Sep 11 2018

Rupee ends at record low on weak local equities and Crude oil surge

Financial Market Overview

11th September, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee swung between gains and losses to end at a record low for a second day against the dollar, hurt by a sharp uptick in crude oil prices and weak local shares amid escalating trade war fears. However, likely intervention from the central bank and government officials yesterday indicating possible steps to stem the rupee’s fall helped slow the pace of decline in the currency.
  • The rupee ended at 72.69 to a dollar, against 72.45 at previous close. The currency, which slumped to lifetime low of 72.75 intraday, moved within a 72.25-72.75 to a dollar range. Most Asian currencies also ended flat to weaker against the greenback.

Indian Equities:-

  • Indian shares fell more than 1 percent for a second straight session on Tuesday, as markets globally braced for a potential escalation in the Sino-U.S. trade dispute, while the rupee continued its downward spiral touching a fresh life-low.
  • The broader NSE index ended down 1.32 percent to 11,287.50, while the benchmark BSE index was down 1.34 percent at 37,413.13. Both indexes marked their worst closing levels since Aug. 2.

Global Markets:-

  • European markets are lower today. The London’s FTSE100 is down 0.70%, the DAX fell by 0.72%, the Spain’s IBEX35 off 0.55%, the CAC40 is down 0.38% and the SMI is trading lower by 0.26%.
  • The mood among German investors unexpectedly improved in September, a survey showed on Tuesday. The Mannheim-based ZEW research institute said its monthly survey showed itsGerman economic sentiment rose to a negative 10.6 this month from minus 13.7 in August. That was compared to the consensus forecast for a reading of minus 14.0..
  • The UK unemployment rate held steady as expected in July, while wage inflation picked up, according to official data released Wednesday. The unemployment rate held as expected at4.0%in July..
  • The Chinese yuan posted a fourth straight session of loss against the dollar, hurt by worries that U.S. President Donald Trump may impose another round of tariffs on Chinese goods. Last Friday, Trump escalated Washington’s trade dispute with Beijing by threatening to levy duties on all imports out of China.