Rupee Opens Lower Despite Firm Equities

Rupee on Thursday (May 28, 2020) opened lower at 75.89 versus its previous close of 75.71 per US dollar.

On Wednesday, even as equities were resilient in trade, domestic currency weakened to 75.74 levels primarily as heightening US-China tensions over Hong Kong security law boosted dollar as a safe haven.

In the bond market, the yield on 10-year government bond opened at 5.756% versus its previous closing of 5.756%.

Oil prices on Thursday after the inventory in US crude, gasoline came in higher than expected, erasing hopes of a swift recovery in demand as economies begin to open up after lockdown. Also, there remains uncertainty on Russia adhering to its supply cut commitment. US WTI crude futures were dragged lower by 5% to a low of $31.4 per barrel while brent crude was down 2.3% at $33.96 per barrel.

Meanwhile, as global stocks edge higher despite US-China tensions, Indian indices are also trading firm.

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