Rupee's Woes Continue

The rupee is expected to open lower, 1-month forwards continued to weaken after the cash close on Friday, rising from 75.25 at the cash close to 75.70 last. Indian markets were closed yesterday, forwards showed only a small decline despite a drop in USD.

On the coronavirus front, though cases continue to surge an Indian developed COVID-19 vaccine showed 78% efficacy, several million doses of Covaxin had already been administered in the country.

• Despite the relentless rise in cases Indian PM Modi has asked states to avoid imposing strict lockdowns and closing businesses in bid to protect the economic recovery. "I urge states that they should consider lockdowns as the last option," said Modi. "They should earnestly try to avoid lockdown and focus on micro-containment zones." The worsening situation outweighs some positivity on reports that everyone over 18 in India was eligible for the vaccine from May 1.