Rupee hits 5-week high versus dollar, stocks sprint as crude oil cools

Indian markets rallied as easing West Asia tensions and a sharp fall in crude oil prices boosted the rupee, bonds and equities

Indian markets gained ground on Monday as easing West Asia tensions and falling crude oil prices lifted sentiment. The rupee rose 0.42 per cent to a five-week high of 94.72 per dollar, supported by lower oil prices and the recent measures by the government and the Reserve Bank of India to attract foreign inflows. The 10-year bond yield eased to a two-month low of 6.87 per cent.

 

The benchmark equity indices advanced nearly 1 per cent, while Brent crude oil fell over 4 per cent on expectations that the Strait of Hormuz could reopen, easing concerns over energy supplies. 

 

 

Going forward, the rupee is expected to remain firm, bond yields range-bound, and equities supported by improving risk sentiment, potential foreign inflows and softer crude prices.