Forex Markets Shut Today On Account Of Parsi New Year

Domestic currency and debt markets are closed on Friday on account of 'Parsi New Year', reported news agency Press Trust of India (PTI). Trading will now resume on Monday. However, local stock markets are functioning as normal. On Thursday, the Indian rupee slipped 26 paise to close below the 70-mark for the first time on strong US dollar demand amid growing concerns over widening trade deficit. Reserve Bank of India (RBI) intervened in the currency market to save the Indian currency.

According to PTI, the Indian rupee has been one of the worst performing currencies among peers this year - raising fears of a repeat of the currency crisis of 2013. The Indian currency has lost 10.5 per cent of its value this year so far against the backdrop of country's ballooning fiscal deficit and surging crude prices. 

Oil prices were on the defensive, on a weakening outlook for crude demand despite their gains on Thursday. India's crude oil import bill is likely to jump by about $26 billion in 2018-19 as rupee dropping to a record low has made buying of oil from overseas costlier, government officials said.

Meanwhile, the Reserve Bank of India's monetary policy committee (MPC) members cited possible risks of inflation in the second half of the year as one of the key drivers for raising interest rates in August, according to minutes of the meeting released on Thursday

On the other hand, domestic stock markets started Friday's session on a green note, supported by broadly positive cues from the global markets. Healthy buying activity can be seen in banking, auto and metal stocks after the US and China agreed to resume trade talks last night. (With agencies inputs)