The Indian currency and bond markets weakened today after exit polls showed mixed results for PM Modi’s ruling party at the recent state elections, and on an increase in international oil prices.
The rupee opened at Rs 71.31 against the dollar today, marking its 3-week low. It closed at Rs 70.80 per US dollar on Friday. The domestic currency fell as much as 0.84 percent or 59 paise in early trade, whereas on Friday, it recovered mildly to close with a gain against the American dollar, in line with a rally in Indian stock markets and positive global cues.
The 10-year benchmark bond yield rose to 7.51 percent, its one-week high, from 7.46 percent.
Meanwhile, international oil price benchmark, Brent crude, extended its Friday gains today by 0.9 percent to $62.21 per barrel as oil-producing alliance OPEC (Organization of Petroleum Exporting Countries) along with its allies and some non-affiliated producers agreed to cut their supply by 1.2 million barrels per day (bpd) from January 2019. The agreement was come upon late on Friday after the OPEC’s biannual meet to stabilize decline oil price. Despite this, Reuters said that analysts’ outlook for next year remains muted on the back of an economic slowdown.
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