Rupee crosses 74, bond yields drop 12 bps

The rupee breached the 74 to a dollar mark on Monday amid a heavy sell-off in the equity markets as the fear of a COVID-19-led economic slowdown gripped various economies.

The rupee opened weak at 74.04, compared with the previous close of 73.87 and went on to touch the day’s low of 74.19 a dollar. The currency finally closed the day at 74.17 a dollar or 0.41% lower than its previous close.

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Bond yields plunged by 12 basis points on Monday on hopes of interest rate cuts by the RBI to address the slowdown. The sharp drop in oil prices could help lower domestic inflation, given that the country imports over 80% of its crude oil requirement. The yield on the 10-year benchmark government bond, after falling below 6%, ended at 6.07%, down 12 bps.

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Printable version | Apr 2, 2020 2:19:15 AM |

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