Sep 10 2018

Rupee came off sharply from the day’s low on likely RBI intervention

Financial Market Overview

10th September, 2018

Noon Update:-                                                                                  

MARKETS AT NOON:-

Rupee:-

  • Indian rupee extended losses against the dollar in afternoon trade, even plummeting beyond the key 72.50 level, as foreign banks’ dollar sales compounded losses tracking upbeat U.S. jobs report and fears of a trade war escalation between the U.S. and China.
  • The rupee was trading at 72.22 to a dollar, against a record-low 72.6750 touched intraday and 71.73 at previous close. Repeated dollar sales by private and state-run banks at various levels, likely on behalf of the Reserve Bank of India, helped ease of pace of depreciation in the rupee. There was also talk the central bank may have intervened through sale of USD/INR currency futures.

Indian Equities:-

  • Indian shares fell 1 percent on Monday, tracking broader Asia as fears of a potentially major escalation in the Sino-U.S. trade conflict weighed on investor sentiment, while the rupee depreciated to a fresh low, bolstering inflation concerns..
  • The broader NSE index was 1.03 percent lower at 11,470.20 and the benchmark BSE index was down 0.97 percent at 38,017.50, after two consecutive sessions of gains..

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.30%, while the Hang Seng led the Shanghai Composite lower. They fell 1.33% and 1.21% respectively..
  • European markets are trading mixed today. The London’s FTSE100 is trading higher by 0.01% followed by the Spian’s IBEX35 at 0.21% while the Germany’s DAX is lower by 0.18% and the France CAC40 is down by 0.01%..
  • The UK economy grew at a faster pace in July, according to data released on Monday. The Office of National Statistics said the economy grew 0.6% in the three months to July, picking up from the meager 0.4% expansion seen previous month..
  • The 10-year U.S. Treasury yield rose by the most in seven weeks to 2.94% on Sep. 7, and the dollar index advanced 0.4% after average U.S. earnings came in 2.9% higher on year, over the 2.7% expected. The world’s largest economy added 201,000 jobs last month, higher than the 191,000 jobs expected by economists poll. The index was last up 0.1%, while the 10-year treasury yield hit 2.95% earlier, its highest level in a month..
  • India’s current account data widened to $15.8 billion or 2.4% of the GDP in the April-June period, primarily on account of the higher trade deficit, central bank data showed post market hours on Sep. 7. While the $15.8 deficit was wider than $13 billion a year ago, it was less than the $17.3 billion median estimate of analysts poll.