The rupee settled at 70.72 against 71.22 at the previous close. The
local unit moved in 70.72 -71.26 per dollar band intra-day.
Indian government bond prices fell for a second consecutive month,
as geo-political and supply concerns weighed on investor appetite,
despite a turn in the monetary policy cycle. The larger-than-expected
supply was the main trigger to drag bond prices lower this month. As
the focus shifted towards India-Pakistan geo-political tensions, yields
hardened further and fear of a war continues to lurk. U.S., China and
other major nations have called on the nuclear-armed neighbors to
exercise restraint.
Global Currency
The dollar held above a three-week low on Thursday as investors
remained cautious amid uncertainty over the progress in U.S.-China
trade talks, while sterling rallied on bets that the chance of a no-deal
Brexit was shrinking.
The yuan was little changed on Thursday in Asia following the
release of weaker-than-expected Chinese PMI data. This month’s
manufacturing PMI came in at 49.2, down from 49.5 in January,
official data showed. The February reading was expected to
unchanged from last month. A reading below 50 means the
manufacturing sector contracted, while a PMI above 50 represents
an expansion when compared with the previous month.
Global Markets
Oil prices fell on Thursday, as U.S.-China trade tensions persisted, the
Chinese economy showed signs of slowing and record U.S.
production undermined OPEC-led output curbs.
Gold rebounded on Thursday from a near two-week low touched in
the previous session as the dollar retreated, keeping bullion on track
for a fifth straight monthly gain, while investors awaited economic
data from the United States and clarity on its trade talks with China.
