Aug 31 2018

Indian Rupee slumped on renewed trade worries and Argentinean peso slide

Financial Market Overview

31st August, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee was headed to log its fifth straight monthly decline against the dollar, as it again plunged to a record low on rout in emerging market currencies amid global trade war risks and surging crude oil prices.
  • The rupee changed hands at 70.9450 to a dollar, against 70.74 at close yesterday. It opened at 70.95 and then slumped to a record-low 71.00 but cut some losses on dollar sales by at least one large state-run bank and a private lender.

 

Indian Equities:-

  • Indian shares slipped on Friday tracking muted global sentiment after a report that U.S. President Donald Trump was preparing to impose more tariffs on China and as losses in financials offset gains in technology and healthcare stocks.
  • The broader NSE index was down 0.24 percent at 11,652.30, while the benchmark BSE index was 0.21 percent lower at 38,598.41.

 

Global Markets:-

  • Asian markets finished lower today. The Hong Kong Hang Seng ended lower by 1.19% and the Shanghai Composite closed lower by 0.46%.
  • European markets are trading lower today. The London FTSE 100 is trading lower by 0.30% followed by the France’s CAC at 0.37% and the Germany’s DAX at 0.61%.
  • The dollar index was last trading off 0.1% at 94.59, following a 0.2% rise overnight.
  • Crude oil prices marked ninth rise in eleven sessions yesterday. The benchmark Brent crude oil contract hit $78.03 per barrel yesterday, highest since Jul. 11 and was last trading at $77.57. India imports 80% of its crude oil needs.
  • Among emerging markets, the Argentinean central bank yesterday increased benchmark interest rate to 60% from 45% to support a plunging peso, which has lost one-fourth of its value this week amid worries over handling of an economic crisis by the country’s leadership.
  • The Turkish Lira continued to decline amid reports the Turkish central bank’s deputy governor was set to resign. It was last trading 0.3% lower against the dollar, but came of its day’s low of 6.7925.