Aug 27 2018

Rupee ended the session at record low on importers Dollar demand and tracking Turkish Lira fall

Financial Market Overview

27th August, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee closed at a record low against the dollar, as importers’ greenback purchases outweighed early gains from steps taken by China to ease pressure off the yuan and remarks from the Federal Reserve chief. Along with that Turkish Lira is also started depreciating against the US. Dollar, it was last seen at 6.2047 trading lower by 3.33%.
  • The rupee settled at 70.16 to a dollar, beating its previous all-time low on closing basis of 70.15 on Aug. 16. It ended at 69.91 on Aug. 24. The domestic currency opened higher and extended gains to 69.71, highest since Aug. 21, before falling to the day’s low of 70.16, as traders reversed their short-dollar positions, triggering stop loss. Most Asian currencies ended mixed.

Indian Equities:-

  • Indian shares closed at record levels on Monday, with the NSE index breaching the 11,700 level for the first time, helped by positive global cues and gains in bank stocks.
  • Both the benchmark BSE index and the broader NSE index ended roughly 1.2 percent higher at all-time highs. The BSE index crossed the 38,700 level for the first time.

Global Markets:-

  • European markets are higher today as French and German shares show gains. The DAX is up 0.55%, the CAC40 gains 0.43%, Spain’s IBEX35 rose 0.28%, eurozone’s EURO Stoxx50 advances 0.31%, the SMI is trading mildly higher by 0.09%. while the  London’s FTSE is closed on account of Summer bank holiday.
  • The Chinese yuan rose to four-week high, after China’s central bank adjusted the methodology for fixing the daily yuan mid-point. It was last trading lower at 6.82. The offshore yuan posted its largest single session gain in well over a year in the previous session.
  • The People’s Bank of China reintroduced use of the counter-cyclical factor in the daily fixing of the yuan’s rate against the dollar, an adjustment it had suspended earlier this year. According to reports, the PBOC said introduction of the counter-cycle factor effectively alleviates the pro-cyclical behavior of the market and stabilizes the market expectations. The move allayed concerns of further depreciation in yuan amid China’s ongoing trade dispute with the U.S.
  • The dollar index slipped 0.5% on Aug. 24 to mark its worst weekly performance since middle of February, after Fed Chair Jerome Powell said he saw little risk of inflation accelerating in U.S. beyond the central bank’s target. It was last trading little changed.