Sep 04 2018

Indian Rupee Steady after RBI Intervention

Financial Market Overview

04th September, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee was little changed against the dollar in afternoon trade, as likely intervention from the central bank offset the currency’s early slump to record low tracking persisting pressure on emerging market currencies.
  • The rupee changed hands at 71.25 to a dollar, against 71.21 at previous close. It slumped to 71.38 earlier today before recouping losses on greenback sales by at least two state-run banks and a private lender, likely on behalf of the Reserve Bank of India, rising to 71.09. Most Asian currencies were trading lower against the greenback.

 

Indian Equities:-

  • Indian shares were little changed on Tuesday amid concerns of foreign fund outflows after the rupee hit a new low in its recent record-setting spree, while gains in IT stocks on the back of a weaker currency underpinned the market.
  • The broader NSE index was down 0.09 at 11,571.55 and the benchmark BSE index was 0.07% higher at 38,339.67.

 

Global Markets:-

  • Asian markets finished higher today. The Hong Kong Hang Seng ended higher by 0.88% and the Shanghai Composite closed higher by 1.10%.
  • European markets are trading mixed today. The Germany’s DAX is trading higher by 0.07% followed by the London FTSE 100 at 0.05% and the France’s CAC is trading lower by 0.09%.
  • The dollar index was last trading up 0.1%.
  • The Indonesian rupiah, the second worst performing currency in Asia following the rupee, declined to multi-year low today, pacing losses in Asian currencies. Worries that the U.S. may impose additional tariffs on Chinese imports as early as this week further contributed to the pressure on regional currencies.
  • The Argentinian peso and the Turkish lira were once again the center of attention, owing to U.S. markets being closed yesterday. The lira declined about 2% against the dollar yesterday despite the nation’s central bank reportedly saying it will adjust the monetary stance at a meeting next week to support price stability. The peso extended a recent selloff despite the country unveiling a new export tax and spending cuts to fight the currency crisis.
  • The benchmark Brent crude oil price was last trading at $78.25 per barrel, after rising 0.9% overnight.