Aug 29 2018

Indian Rupee Fall to a Record Low On Month-End Dollar Demand

Financial Market Overview

29th August, 2018

Noon Update:-                                                                            

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee slumped to a fresh record low against the dollar in afternoon trade, as banks stepped up greenback purchases to meet month-end demand from importers and currency futures expiry-related purchases.
    However, sporadic intervention by the central bank at various levels limited further losses.
  • The rupee was last seen at 70.53 to a dollar, surpassing its previous all-time low of 70.40 hit on Aug. 16, and 70.10 at close yesterday. The domestic currency opened at 70.32 and rose to an intraday high of 70.2450, before falling to 70.56, but recouped some losses on apparent intervention by the Reserve Bank of India at multiple levels.

 

Indian Equities:-

  • Indian stock indexes were muted on Wednesday, following record-setting gains in the previous two sessions, as losses in IT stocks offset an advance in energy and materials shares.
  • The Sensex is down 44.18 points or 0.11% at 38852.45, while the Nifty is down 19.20 points or 0.16% at 11719.30. The market breadth is narrow as 1,232 shares advanced, against a decline of 1,210 shares, while 150 shares were unchanged.

 

Global Markets:-

  • Asian markets finished mixed today. The Hong Kong Hang Seng ended higher by 0.14% and the Shanghai Composite closed lower by 0.31%.
  • European markets are trading higher today. The Germany’s DAX and the France’s CAC is trading equally higher by 0.16% and the London FTSE 100 is trading higher by 0.14% .
  • The dollar index was last trading up 0.1%, reversing overnight losses. Data yesterday showed U.S. August consumer confidence was higher-than-expected at 133.4, also highest since October 2000.
  • The benchmark Brent crude oil contract was last trading at $75.97 per barrel after rising half a percent overnight, on reports of rise in U.S. crude inventories.
  • The Chinese Yuan declined 0.2% ahead of the official manufacturing PMI data due later this week. Persistent fears over an ongoing trade dispute between Beijing and Washington also hurt the Yuan.