Aug 28 2018

Rupee ended marginally higher, likely RBI intervention helped to curb importers Dollar demand

Financial Market Overview

28th August, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee rose against the dollar, as banks stepped up greenback sales after an apparent intervention by the central bank limited losses from importers’ dollar demand.
  • Rupee ended at 70.10 to a dollar, against the record-closing 70.16 yesterday. The currency rose to 70.02 before falling to the day’s low of 70.2950 per dollar, but pared losses after apparent intervention by the Reserve Bank of India in currency futures prompted banks to cut their long dollar positions.

Indian Equities:-

  • Indian shares ended Tuesday at record closing highs, led by gains in energy and financial stocks and positive sentiment in global markets after the U.S.- Mexico agreement to overhaul their trade deal.
  • The benchmark BSE index ended 0.52 percent higher at 38,896.63, while the broader NSE index closed 0.4 percent higher at 11,738.50.
  • Reliance Industries Ltd ended 2.4 percent higher after reaching a life-high earlier in the session, while Coal India Ltd ended up 0.22 percent higher after hitting its highest in nearly three months.

Global Markets:-

  • European markets are mixed today. The FTSE 100 is up 0.28%, the France’s CAC 40 is up 0.26%, Germany’s DAX is up 0.15% while the Spain’s IBEX35 is down 0.30%, the SMI lost 0.16% and the Eurozone’s Euro Stoxx50 is trading mild lower by 0.02%..
  • Brent crude oil prices were last trading up 0.5% at $76.59 per barrel, amid risks of supply disruptions from Venezuela, Africa, and Iran. Members of the Organization of the Petroleum Exporting Countries and Russia have also been reducing production of the crude oil..
  • The dollar index was last trading down 0.1%, extending overnight decline. It fell for second session yesterday, closing at its lowest level in almost a month, amid remarks by the Federal Reserve Chair Jerome Powell that U.S. inflation is unlikely to accelerate beyond the central bank’s target.
  • Reports of the U.S. and Mexico reaching a trade deal prompted a rally in risk assets and reduced appeal for the safe-haven U.S. currency..
  • The Turkish lira weakened on Tuesday as investors weighed up Turkey’s efforts to manage its rift with the United States after Finance Minister Berat Albayrak warned U.S. trade sanctions against Ankara could destabilize the Middle East.