Indian debt and currency markets shut for local holiday
Indian debt and FX markets are closed today for a local holiday while equities remain open. Trading resumes Thursday after the rupee hit a record low of 94.83.
Financial markets in India are observing a partial closure on Wednesday, April 1, in observance of a local holiday. While the debt and foreign exchange markets are shut for the day, the equity markets continue to operate as scheduled. Normal trading activity for government bonds and the local currency is expected to resume on Thursday, April 2.
The pause in trading follows a period of significant volatility for the US Dollar / Indian Rupee pair. On Monday, the rupee reached a historic closing low of 94.83 against the greenback. Analysts suggest the outlook for the currency remains pressured by geopolitical tensions stemming from the ongoing conflict in the Middle East.
In the fixed-income sector, the benchmark 10-year bond yield experienced a sharp increase of 9 basis points, settling at 7.0345% prior to the holiday break. This upward movement in yields coincided with the rupee's decline and sustained high prices for Crude Oil, which continue to impact the domestic economic sentiment.
