Oct 17 2018

Rupee closed lower tracking weak local equities, FED minutes in focus

Financial Market Overview

17th October, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee closed lower against the dollar, tracking weakness in local shares and on caution ahead of the release of the U.S. Federal Reserve’s latest policy meeting later today. However, some dollar sales by exporters and an upbeat global risk sentiment limited further losses in the local unit.
  • The rupee settled at 73.5950 to a dollar, against 73.46 at previous close. The currency opened slightly higher at 73.41 per dollar and swung between gains and losses in a choppy trade. It rose to day’s high of 73.36, its highest since Oct. 3, before falling to 73.67 per dollar. Indian financial markets will remain closed tomorrow for a local holiday

Indian Equities:-

  • Indian shares ended more than one percent lower on Wednesday, dragged by financial stocks such as Indiabulls Housing Finance Ltdand Yes Bank Ltdamid liquidity concerns.
  • The benchmark BSE index closed 1.09 percent lower at 34,779.58 while the broader NSE index ended 1.24 percent weaker at 10,453.05. Indian markets have been facing a liquidity crunch owing to a depreciating rupee and higher oil prices

Global Markets:-

  • European markets are mixed today. The Germany’s DAX and Spain’s IBEX35both are down by 0.43% , the SMI is down 0.24%, the France’s CAC40 is off 0.17%, the Eurozone’s STOXX50 is trading lower by 0.15% while the London’s FTSE100 is trading higher by 0.28%.
  • Investors’ focus will be on the minutes of the Federal Reserve’s latest policy meeting. The Fed at the September meeting raised rates for the third time this year and signaled that it was on course for another increase in December. Of special importance to investors will be whether the minutes provide any context to the Fed dropping the “accommodative” language.
  • The Brent crude prices pared early gains to trade 0.3% lower at $81.20 per barrel. It fell below $80 a barrel mark yesterday to $79.80, but rebounded to post its third straight gain on the unexpected decline in U.S. crude inventories and concerns about a diplomatic row between the U.S. and Saudi Arabia over the disappearance of a journalist.
  • The dollar index was last trading 0.3% higher, after closing unchanged overnight. Markets will also watch for any cues on Brexit deal from the European Union Summit that started today. The euro was last trading down 0.3%.