Nov 02 2017

Rupee ends steady as importer bids offset gains; BoE hikes rates for the 1st time in a decade

Financial Market Overview

02nd November, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee was little changed against the dollar, as importers’ greenback demand offset gains triggered by a broad weakness in the U.S. currency even as investors awaited progress on U.S. tax reforms and appointment of the next Federal Reserve chair.
  • The rupee settled at 64.6075 to a dollar, against 64.59 at close yesterday. The currency had risen to a day’s high of 64.4775, its highest since Sep. 21, but reversed gains and fell to a day’s low of 64.6750, as state-run banks stepped up dollar purchases, most likely for oil importers, while foreign lenders bought the greenback for their custodian clients. Most other Asian currencies were higher against the greenback.

Indian Equities:-

  • Indian shares ended marginally lower on Thursday, as quarterly results from companies such as Tech Mahindra Ltd weighed, although losses were capped by gains in pharmaceutical shares, including Divi’s Laboratories Ltd that rose about 16 percent.
  • The benchmark BSE index closed 0.08 percent lower at 33,573.22, while the broader NSE index ended down 0.16 percent at 10,423.80.

Global Markets:-

  • European markets are mixed. The FTSE 100 is higher by 0.34%, while the DAX is leading the CAC 40 lower. They are down 0.22% and 0.16% respectively.
  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.53%, while the Shanghai Composite led the Hang Seng lower. They fell 0.37% and 0.26% respectively.
  • As expected, the Bank of England (BoE) decided on Thursday to increase interest rates for the first time in a decade. Specifically, the BoE increased the benchmark interest rate from a record low of 0.25% to 0.50%.
  • This is the first increase since July 2007 when rates were increased to 5.75% and effectively reverses the last rate cut in the wake of the Brexit referendum when the Bank was concerned about uncertainty affecting the British economy