Rupee At 1-Week High On Foreign Banks' Dollar Sales

Rupee At 1-Week High On Foreign Banks' Dollar Sales

19 Nov 2019 05:34 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee rose to a one-week high against the dollar, as foreign banks’ greenback sales and strong local equities outweighed the uncertainty over a long-awaited U.S.-China trade deal.
  • The currency settled at 71.71 to a dollar, its highest since Nov. 11, against 71.84 at previous close. The rupee opened at 71.91 and fell to the day’s low of 72.01, before rising to the day’s high of 71.68 in late trade. Broad market traders are nervous as the date of another round of U.S. tariffs on Chinese goods is nearing, and so far there has not been any concrete development on the trade talks.

Indian Equities

  • Indian shares ended higher on Tuesday, led by gains in banking stocks, while shares of telecom companies surged on the back of announcement by the country's two major mobile network service providers that they planned to hike tariffs.
  • The NSE Nifty 50 index ended 0.47% at 11,940, while the S&P BSE Sensex closed 0.5% higher at 40,509.96. The Nifty public sector bank index gained 3.9%, while the Nifty energy index rose 1.5%.

Global Markets

  • European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.31% while Germany's DAX is up 1.19% and France's CAC 40 is up 0.62%.
  • Wall Street's three main indexes on Monday barely extended the previous session's closing records as investors waited for concrete progress on U.S.-China trade relations after mixed headlines. The Dow Jones Industrial Average rose 31.33 points, or 0.11%, to 28,036.22, the S&P 500 gained 1.57 points, or 0.05%, to 3,122.03 and the Nasdaq Composite added 9.11 points, or 0.11%, to 8,549.94.
  • There’s a rising tide of supply as the Federal Reserve pumps dollars into bank-funding markets in the wake of September’s upheaval. That has the potential to dent the yield advantage that U.S. markets offer just as a change of management at the European Central Bank could draw a line under monetary easing in the euro’s home region.
  • British manufacturers saw a pick-up in orders in November albeit from near decade-low levels, helped by the avoidance of a no-deal Brexit at the end of October USDINR is trading around 71.87, having made a high of 72.00 till now for the day. Would suggest to hedge more if not sufficiently hedged.