India Rupee Slips For 2nd Day On Broad Dollar Strength

India Rupee Slips For 2nd Day On Broad Dollar Strength

17 Jul 2019 05:28 PM

Financial Market Overview

17th July, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee hit a two-week low against the dollar, down for the second straight session, amid broad dollar strength on the back of upbeat U.S. retail sales data and an uptick in crude oil prices.
  • The rupee settled at 68.81 to a dollar, its lowest since Jul. 3, against 68.71 at previous close. The local unit opened flat and traded in 68.70 - 68.89 band for the day in a choppy session.
  • The way crude oil price is once again starting to inch up it is possible that rupee may test 69 by tomorrow and any slowdown in inflows in the local debt in coming days will only add to the deprecation pressure. With no fresh triggers so far in sight now, rupee may trade in 68.60-69.10 band until next one week.

Indian Equities

  • Benchmark indices continued to gain for third consecutive session with the Nifty reclaiming 11,700 level intraday, driven by banks, FMCG and IT stocks. The BSE Sensex was up 84.60 points at 39,215.64 and the Nifty50 rose 24.90 points to 11,687.50 while Nifty Bank gained 165 points. But the market breadth was in favour of bears as about 1,350 shares declined against 1,099 advancing shares on the BSE.
  • Agro Tech Foods said Arijit Datta, the Chief Financial Officer (CFO) of the company has tendered his resignation. ICICI Lombard General Insurance said Vishal Mahadevia resigned as Non-executive, Independent Director of the company.

Global Markets

  • European markets are mixed. Shares in London are lower with the FTSE 100 off by 0.12%. The FTSE 100 and DAX are uchanged.
  • U.S. stocks edged lower on Tuesday as quarterly results from banks added to concerns about lower interest rates dampening their profits, while comments from U.S. President Donald Trump on trade also dragged down Wall Street's major indexes. JPMorgan Chase & Co and Wells Fargo & Co beat quarterly profit estimates but reported weaker net interest income, pointing to rising deposit costs. Those results followed Citigroup Inc's results on Monday, in which the bank reported a drop in its net interest margin. The Dow Jones Industrial Average fell 23.53 points, or 0.09%, to 27,335.63, the S&P 500 lost 10.26 points, or 0.34%, to 3,004.04 and the Nasdaq Composite dropped 35.39 points, or 0.43%, to 8,222.80.
  • A private gauge of U.S. home builder sentiment increased in July as falling mortgage rates offset rising building costs and worries about global trade tensions. The National Association of Home Builders and Wells Fargo & Co said on Tuesday their index of builder confidence in newly built, single-family homes increased to 65 from 64 in June.
  • U.S. retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the drag on the economy from weak business investment. The report from the Commerce Department on Tuesday did not change market expectations that the Federal Reserve will cut interest rates this month for the first time in a decade.
  • Consumers prices in the euro zone increased by slightly more than initially forecast in June, data showed on Wednesday, although headline and underlying inflation rates were still below the improvement that policymakers are seeking. EU statistics agency Eurostat said prices in the 19-country euro zone were 1.3% higher year-on-year in June.


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