Sep 05 2018

Indian Rupee Came Off From Record Lows On Likely Central Bank Intervention

Financial Market Overview

05th September, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee recovered from a record low against the dollar in afternoon trade, as likely intervention from the central bank and greenback sales by a European bank offset some losses tracking custodial clients exiting Indian assets through foreign banks.
  • The rupee was trading at 71.9475 to a dollar, against 71.58 at close yesterday. It rose to 71.37 soon after opening, though the gains were short lived on dollar purchases by at least one large state-run bank along with several foreign banks. The rupee then plummeted to a record-low 71.95.

 

Indian Equities:-

  • Indian shares edged down in line with broader Asia on Wednesday, with banks and consumer goods stocks leading the losses, while the rupee fell to a fresh low as simmering trade tensions continued to hurt emerging market currencies.
  • The broader NSE index was 0.6 percent lower at 11,450.75 on track for a third consecutive session of losses and the benchmark BSE index was down 0.5 percent at 37965.58, was headed for its sixth straight session of losses.

 

Global Markets:-

  • Asian markets finished lower today. The Hong Kong Hang Seng ended lower by 2.66% and the Shanghai Composite closed lower by 1.68%.
  • European markets are trading lower today. The Germany’s DAX is trading lower by 0.48% followed by the France’s CAC at 0.43% and the London FTSE 100 at 0.24%.
  • The dollar index was last trading up 0.1%, extending its two-week high overnight, following higher 10-Year U.S. bond yield after a report showed U.S. manufacturing expanded faster than expected.
  • The benchmark Brent crude oil price was last down 0.8 at $77.57 per barrel, as the impact from tropical storm on U.S. Gulf post was weaker than expected. Prices had risen as much as 2% to $79.72 yesterday, within striking distance of the crucial inching closer to $80 mark.
  • Emerging market currencies such as the Argentinean peso, South African rand and Turkish lira also remained under pressure. On the other hand, Asian currencies, including the Thai baht, Indonesian rupiah and Philippine peso traded stronger against the greenback, tracking gains in the Chinese Yuan.