Rupee Ends Higher On Strong Shares, Poll Outcome

Rupee Ends Higher On Strong Shares, Poll Outcome

24 May 2019 05:42 PM

Financial Market Overview

24th May, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee recorded its first weekly rise in three weeks against the dollar, as investors’ demand for local assets increased in run-up to Prime Minister Narendra Modi-led alliance’s massive win in national elections for a second time.
  • The rupee ended at 69.53 to a dollar in Mumbai, its highest since May 7, against 70.01 at the previous close. The local unit opened at 69.75, before rising to day’s high of 69.49 amid likely inflows into local assets.
  • The rupee gained nearly 1%, against last week’s 0.4% depreciation and the biggest single-session rise against the dollar since March18.

Indian Equities

  • Indian indices ended near day's high level on May 24 after BJP led NDA government got clear mandate in the Lok Sabha Election 2019.
  • At close, the Sensex was up 623.33 points at 39434.72, while Nifty was up 187.10 points at 11844.10. About 1823 shares have advanced, 676 shares declined, and 150 shares are unchanged.

Global Markets

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.90% while Germany's DAX is up 0.89% and London's FTSE 100 is up 0.68%.
  • Pressure on the Pound Sterling to US Dollar exchange rate eased ahead of the weekend as markets braced for Theresa May to announce a departure date. While a significant degree of political uncertainty continued to hang over Pound Sterling this was not enough to encourage investors to continue selling out of the currency.
  • The dollar edged away from two-year highs on Friday after weak U.S. manufacturing activity data sparked worries that the trade conflict with China may hurt the world's largest economy and affect the currency's safe-haven status.
  • Against a basket of six major currencies, the dollar was down 0.2% at 97.686 in early European trade and 0.7% off a two-year high of 98.371 hit the previous session.
  • The Chinese yuan edged down against the U.S. dollar on Friday in Asia, while the pound traded flat despite reports that U.K. Prime Minister Theresa May might resign within the next day or two.
  • The euro-area economy remains on track with European Central Bank projections that foresee an upturn later this year. The ECB is gearing up for a meeting in Lithuania in two weeks that will include updates to its forecasts and discussions over how generous to make a new round of bank loans known as TLTROs. Its previous projections in March were followed by sometimes-conflicting economic reports showing troubled manufacturing, relatively resilient services and stubbornly low inflation.

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