Oct 26 2018

Rupee ends lower amid sell-off in global equity markets

Financial Market Overview

26th October, 2018

Evening coffee

Indian Rupee:-

  • The Indian rupee logged its first weekly decline in three weeks against the dollar, as investors’ appetite for risk assets waned amid sell-off in the global equity markets. However, persistent decline in crude oil prices curbed further losses in the local unit.
  • The rupee settled at 73.4550 to a dollar in Mumbai, from 73.2750 at previous close. It briefly rose to the day’s high of 73.27 amid recovery in the Chinese yuan from 22-month low and dollar sales by foreign banks along with few exporters.

Indian Equities:-

  • Indian shares closed at a seven-month low on Friday, dragged by IT and banking stocks, in line with a worldwide sell-off amid worries over global trade and economic growth.
  • The broader NSE index ended 0.94% lower at 10,030, while the benchmark BSE index closed down 1.01% at 33,349.31.

Global Markets:-

  • European markets are sharply lower today with shares in France off the most. The CAC 40 is down 1.68% while Germany’s DAX is off 1.23% and London’s FTSE 100 is lower by 1.11%.
  • The Brent crude oil contract headed for its third weekly fall of over 4%, after world’s biggest oil producer Saudi Arabia pledged to keep oil markets well supplied in the wake of looming U.S. sanctions on Iran from November. The contract was trading down 0.9% at $76.23 per barrel, after rising nearly 1% yesterday.
  • The dollar index was headed for its third straight weekly rise amid rising safe-haven bets, drop in euro and upbeat economic data, which increased expectation that the Federal Reserve will hike rates one more time before end of 2018. The index was last trading up 0.1%.
  • The euro, which has been weighed down by uncertainty of Brexit and clash between European Union and Italy over Rome’s budget, further came under pressure after the European Central Bank’s policy decision. The ECB left its benchmark interest rate unchanged as expected and promised to adhere to the laid out timetable for the stimulus exit.