India Rupee Logs Best Day In 6 Months On Oil Retreat

India Rupee Logs Best Day In 6 Months On Oil Retreat

18 Sep 2019 05:34 PM
 

Financial Market Overview

18th Sep, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee logged its biggest single-session rise in six months against the dollar, helped by a retreat in crude oil prices following remarks by Saudi Arabia that lost oil production would be restored by the end of this month. The rupee settled at 71.23 to a dollar, against its previous close of 71.78.
  • The unit opened at 71.50 and rose to the day’s high of 71.17. The local unit was the top performing Asian currency for the day, and also logged its best single-session rise since Mar. 18.
  • All eyes are set on the Fed meet which I believe will deliver a rate cut but with a hawkish tone. This will propel the dollar index higher and will not bode well for the Asian units. Rupee witnessed a decent appreciation today.

Indian Equities

  • Benchmark indices ended higher but off day's high after no major announcement from the Cabinet. At close, the Sensex was up 82.79 points at 36,563.88, while Nifty was up 23.10 points at 10,840.70.
  • About 1236 shares have advanced, 1227 shares declined, and 156 shares are unchanged. Tata Steel, BPCL, Vedanta, JSW Steel and IOC were among major gainers, while losers were Britannia Industries, Coal India, ONGC, Eicher Motors and Yes Bank. Except pharma, all other sectoral indices ended in the green led by the metal, IT, infra, energy, auto and bank.

Global Markets

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.14% while Germany's DAX is up 0.13% and London's FTSE 100 is up 0.06%.
  • Wall Street ended higher on Tuesday as the impact of weekend attacks on Saudi Arabia's biggest oil refinery faded and investors awaited a widely expected Fed interest rate cut on Wednesday. Stocks closed firmly in positive territory after being mixed for much of the session. That helped make up for a hit to Wall Street on Monday after attacks wiped out nearly half of Saudi Arabia's oil production, sending oil prices soaring and fuelling geopolitical tensions. The S&P 500 is less than 1% short of its record high close on July 26. The Dow Jones Industrial Average edged up 0.12% to end at 27,109.03 points, while the S&P 500 gained 0.26% to 3,005.61. The Nasdaq Composite added 0.4% to 8,186.02.
  • U.S. manufacturing output increased solidly in August, boosted by a surge in the production of machinery and other goods, but the outlook for factories remains weak amid rising headwinds from trade tensions and slowing global economies. Fears that the drag from the trade war could spill over to the broader economy are expected to compel the Fed to cut interest rates again on Wednesday to keep the longest expansion in history, now in its 11th year, on track. The Fed lowered borrowing costs in July for the first time since 2008.
  • Consumer prices in Britain rose last month at the slowest rate since December 2016, a pre-Brexit boost to the spending power of households who are also seeing the fastest wage growth in 11 years. Prices of goods and services paid by consumers rose at an annual rate of 1.7% in August after a 2.1% increase in July, the Office for National Statistics (ONS) said on Wednesday.

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