Indian Rupee ends higher on dollar sales by foreign banks

Indian Rupee ends higher on dollar sales by foreign banks

11 Sep 2019 05:45 PM

Financial Market Overview

11th Sep, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • Indian rupee rose to a near-two-week high against the dollar on greenback sales by foreign banks, likely for corporate clients and rise in local shares for a third straight session. The rupee ended at 71.65 to a dollar, its highest since Aug. 30, against 71.70 at previous close. It opened lower at 71.84 and fell to the day's low of 71.86, before rising to the day's high of 71.60.
  • Most Asian currencies fell after U.S. Treasury yields settled at a near one-month high of 1.70% yesterday. Yields across developed countries in recent days have been boosted by improved risk appetite and position adjustment ahead of tomorrow’s European Central Bank policy review, and the U.S. Federal Reserve’s decision due next week.

Indian Equities

  • Indian shares settled higher on Wednesday, ahead of key inflation data, with shares of Yes Bank Ltd witnessing its best session in over six months. The broader NSE index ended 0.3% higher at 11,035.70, while the benchmark BSE index closed up 0.34% at 37,270.82.
  • The Nifty banking index, which tracks both state-owned and private-sector lenders, closed nealry 1% higher with Yes Bank shares gaining as much as 19.57% —its biggest intraday spike since Feb. 14. Auto makers were among the top gainers on the blue-chip index, with Tata Motors Ltd finishing the session 10.6% higher and Eicher Motors Ltd closing nearly 5% up.

Global Markets

  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.91% while Germany's DAX is up 0.77% and France's CAC 40 is up 0.46%.
  • The yen was weaker on Wednesday as a cautious risk-on mood dampened safe haven demand, while the euro was steady ahead of the upcoming European Central Bank meeting on Thursday.
  • ECB policymakers are widely is expected to unveil a fresh wave of stimulus measures to shore up growth and inflation in the euro area economy, which has been hit by the escalating U.S.-China trade war and Brexit. The ECB could set the tone for upcoming rate-setting decisions by the U.S. Federal Reserve and the Bank of Japan next week, and for the broader global risk appetite.
  • Britain's economy picked up more than expected in July, data showed on Monday, dampening fears that it will succumb to its first recession since the financial crisis as the Brexit crisis escalates. Economic output in July alone was 0.3% higher than in June, the Office for National Statistics (ONS) said, marking the biggest rise since January and topping all forecasts economists that had pointed to a 0.1% increase.
  • The benchmark Brent crude oil contract was last trading 0.9% higher at $62.97 per barrel, after an industry report showed that crude stockpiles in the U.S. fell last week by more than twice the amount that analysts had forecast.