Sep 07 2018

Indian rupee ended higher on heavy greenback sales by private banks

Financial Market Overview

07th September, 2018

Evening Report:-

MARKETS CLOSED AT:-

Rupee:-

  • The Reserve Bank of India intervened heavily in the foreign exchange market on Friday, mounting a formidable defence of the 72 rupee to the dollar mark in a reversal of its light-handed approach in the last few weeks
  • The Indian rupee ended higher at 71.73 per dollar versus 71.9850/71.9950 at previous close, as heavy greenback sales by private banks, likely on behalf of the central bank, eroded losses amid weak global risk appetite. However, the rupee fell 1% against the dollar this week, its fourth fall in last five weeks.

Indian Equities:-

  • Indian shares ended higher on Friday helped by gains in energy and automobile stocks as the rupee regained some lost ground, but the benchmark indexes logged their worst week since end June.
  • The Sensex ended up 147.01 points or 0.38% at 38389.82, while the Nifty was higher by 52.20 points or 0.45% at 11589.10. The market breadth is positive as 1,537 shares advanced, against a decline of 1,151 shares, while 195 shares were unchanged.

Global Markets:-

  • European markets are lower today. The France’s CAC40 is lower by 0.18%, the Germany’s DAX fell by 21%, the Eurozone’s  STOXX 50 is lower by 0.37%, the SMI is up 0.03% while the Spain’s IBEX35 is down 0.74% and the London’s FTSE100 fell by 0.88% .
  • The euro was a shade higher at $1.1645 while sterling idled at $1.2939 amid ongoing uncertainty over Brexit negotiations.
  • The dollar index was down 0.1%, ahead of the U.S. monthly jobs data due later today. Economists polled by Reuters expect the U.S. economy to have added 191,000 jobs last month, up from 157,000 in the prior month. Average earnings likely rose by 2.7% on-year and the unemployment rate probably ticked lower to 3.8%, according to the poll.
  • U.S. job growth accelerated in August, with wages notching their largest annual increase in nine years, strengthening views the economy was so far weathering the Trump administration’s escalating trade war with China.
  • Nonfarm payrolls surged by 201,000 jobs last month, boosted by hiring at construction sites, wholesalers and professional and business services, the Labor Department said on Friday. The economy needs to create 120,000 jobs per month to keep up with growth in the working-age population.