Indian rupee at 3-week low, yields fall on new COVID variant concerns

  • Date: 26-Nov-2021
  • Source: Money Control
  • Sector:Healthcare
  • Country:Gulf
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Indian rupee at 3-week low, yields fall on new COVID variant concerns



Shares and currencies in Asia’s emerging markets fell sharply as investors fled riskier assets after the detection of the significant new mutation, which in-turn strengthened safe-haven assets like the dollar.







Reuters









November 26, 2021 / 01:25 PM IST





Representative image



The Indian rupee dropped to its lowest level in three weeks and bond yields fell on Friday as concerns over a new COVID variant spooked markets across the globe.

Shares and currencies in Asia’s emerging markets fell sharply as investors fled riskier assets after the detection of the significant new mutation, which in-turn strengthened safe-haven assets like the dollar.

The partially convertible rupee was trading 74.71/72 per dollar at 0736 GMT compared to its close of 74.51. It touched a low of 74.5850 earlier, its lowest since Nov. 2.

The benchmark 10-year bond yield was trading at 6.32%, down 5 basis points from its close on Thursday.

"Buying being seen in bonds is largely on account of the new variant today. The market now expects the RBI to be dovish due to the uncertainty," said Murthy Nagarajan, head of fixed income at Tata Asset Management.



"Some people are also toying with the idea