Nov 02 2018

Indian rupee rises most in 5 years, beats most Asian peers

Financial Market Overview

02nd November, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee closed higher against the dollar it is the biggest weekly rise in four months, helped by a sharp decline in crude oil prices and improved risk sentiment. The rupee rose as high as 72.4350 vs the dollar, gaining 1.44 percent during trade, the most since Sept. 19, 2013.
  • The currency closed just off the day’s high at 72.44 versus 73.4750. There was large-scale unwinding of speculative long dollar positions on the rupee, which led to the sharp rally in the currency relative to its peers in the region. Most Asian currencies rallied on hopes after a phone call between the U.S. and Chinese presidents raised hopes of a thaw in trade tensions.

 Indian Equities:-

  • Indian shares climbed on Friday and clocked their best weekly gain in nearly two-and-a-half years, as the rupee rose the most in more than five years and as crude prices softened.
  • The rupee firmed up 1.33 percent to a five-week high of 72.495 against the dollar, as oil prices slipped further and headed for a weekly loss of more than 6 percent.
  • The broader NSE index ended 1.66 percent higher at 10,553, while the benchmark BSE index closed 1.68 percent higher at 35,011.65. The NSE index closed 5.21 percent higher for the week while the BSE index added 4.98 percent.
  • Housing Development Finance Corporation Ltd was the top boost to the NSE index, rising 3.5 percent to its highest close since Sept. 21.

 Global Markets:-

  • European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.50% while France’s CAC 40 is up 1.31% and London’s FTSE 100 is up 0.74%.European shares joined a global relief rally on Friday after U.S. President Donald Trump fueled hopes among investors that a deal to end a prolonged dispute over trade could be made with his Chinese counterpart Xi Jinping later this month.
  • The pan-European STOXX 600 rose 0.9 percent, hitting its highest since Oct. 10, although companies and indexes most exposed to trade surged further.
  • U.S. job growth likely rebounded in October, with wages expected to have recorded their largest annual gain in 9-1/2 years, pointing to further labor market tightening that could encourage the Federal Reserve to raise interest rates again in December.
  • The Labor Department’s closely watched monthly employment report on Friday is also expected to show the unemployment rate steady at a 49-year low of 3.7 percent. Sustained labor market strength could ease fears about the economy’s health following weak housing data and stalling business spending.
  • The U.S. government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, keep buying Iranian oil after it reimposes sanctions on Tehran next week, Bloomberg cited a U.S. official as saying.
  • Nonfarm payrolls forecast to increase 190,000 in October Unemployment rate seen unchanged at 3.7 percent.Average hourly earnings expected to rise 0.2 percent