Nov 14 2018

Rupee Stays Up As Oil Plunges; Banks’ Dollar Bids Cap Gain

Financial Market Overview

14th November, 2018

Noon update

Indian Rupee:-

  • The Indian rupee remained higher against the dollar in afternoon trade, tracking a sharp overnight fall in crude oil prices that eased worries over widening current account deficit at home. However, greenback demand from state-run and foreign banks capped gains in the local unit.
  • The rupee changed hands at 72.14 to a dollar, against 72.6650 at yesterday’s close. It opened at 72.16 and extended gains to 72.01, highest since Sep. 21.

Indian Equities:-

  • Indian shares pared most of the early gains to trade slightly higher on Wednesday as a slump in oil prices lifted stocks of oil marketers, but a fall in IT counters due to a firmer rupee capped the gains.
  • The broader NSE index was up 0.23% at 10,606.80, while the benchmark BSE index was 0.20% higher at 35,214.98.

Global Markets:-

  • Asian markets finished lower as of the most recent closing prices. The Hang Seng lost 0.64% and the Shanghai Composite was 0.85% down.
  • European shares are trading lower today. The FTSE 100 lost 0.71%, CAC lost 1.00% and the DAX was 0.87% down.
  • Oil prices struggled for traction on Wednesday after sinking on worries about weakening world demand and oversupply. The U.S. oil’s run of 12 days of losses through Tuesday and Brent crude’s near-24% decline from the highs witnessed in early October have come amid concerns over a slowdown in demand from China, the world’s largest importer, and waivers by U.S. in relation to Iran sanctions. Brent crude oil contract was last trading 0.14% lower at $65.38 per barrel.
  • The dollar index was down 0.1%, extending overnight decline of around 0.3% amid a rebound in the euro and the pound, after reports stated Britain was close to striking a Brexit deal after months of talks.
  • The Chinese yuan edged higher to 6.9490 against the dollar. Earlier today, data showed that China’s October industrial output and fixed investment exceeded expectations, while retail sales missed estimates.