Sep 27 2018

Rupee ends little changed as likely central bank intervention offsets oil rally

Financial Market Overview

27th September, 2018

Evening coffee

Rupee:-

  • Indian rupee ended little changed against the dollar, as oil import-related greenback bids and a weak euro ate into gains following New Delhi’s import duty hike on some items to control current account deficit.
  • The rupee closed at 72.59 to a dollar, against 72.61 yesterday. It rose to 72.38 in early trade before sliding to as low as 72.78 intraday. Other Asian currencies ended mixed against the dollar.

Indian Equities:-

  • Indian shares ended lower on Thursday, dragged by financial and auto stocks, as investors remained cautious after the government raised import tariffs on select goods and the central bank announced measures to ease liquidity concerns.
  • The benchmark BSE index closed down 0.60 percent at 36,324.17, while the broader NSE index ended 0.69 percent lower at 10,977.55. Both indexes fell for a second straight session, with the NSE index closing below 11,000 levels for the second time in over two months.

Global Markets:-

  • European markets are mixed today. The Spain’s IBEX35 is down 0.53%, the SMI lost 0.48%, the Eurozone’s STOXX50 is down 0.07%, the Germany’s DAX is off 0.04%, and the France CAC is mild lower by 0.03% while London’s FTSE 100 gains 0.29%.
  • The Brent contract rose as much as $82.44, close to near its four-year high before paring some gains amid reports citing sources familiar with Organization of the Petroleum Exporting Countries policy that Saudi Arabia and other producers discussed a possible production increase of about 500,000 barrels a day among the OPEC and non-OPEC allies to offset a drop in Iranian production.
  • The dollar gained ground against the other major currencies on Thursday as markets digested the Federal Reserve’s widely expected rate hike and indications that its remains on track to continue monetary tightening into next year. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.37% to 94.55, just below the intraday high of 94.64. EUR has fallen to 1.1681 and was last seen at 1.1707 down 0.43% against the US Dollar.