Speaking to news agency PTI earlier, V K Sharma, Head PCG & Capital Markets Group, HDFC Securities had said, “Rupee pared losses and closed flat as crude oil prices retreated and dollar selling by state run lenders on behalf of RBI.” Even the Bond markets managed to halt their decline as softer US yields supported the sentiment. The benchmark 10-year bond yield fell by 4 basis points, the most since October 16, to 7.89 per cent as investors cut down exposure to riskier assets.
The domestic currency settled at 73.57 per dollar, showing a loss of just 1 paise over the previous close on Tuesday. On Monday, the rupee had settled 24 paise lower at 73.56 against the US dollar. On Monday, the domestic indices felt for the fourth consecutive day tracking a sluggish trend in the global share market on geo-political tensions and worries over trade war.
The reports also highlights that the foreign investors took out more than Rs 850 crore from capital markets since Friday amid the ongoing geo-political crisis.