Jun 22 2018

Rupee extended gains on Dollar sales by foreign banks; OPEC meet eyed

Financial Market Overview

22nd June, 2018

Noon Update:-                                                                                  



  • Indian rupee extended gains against the dollar in afternoon trade, underpinned by greenback sales by foreign banks after the U.S. currency slipped further away from 11-month highs against major currencies amid weak U.S. economic data.
  • The rupee was last seen at 67.76 to a dollar, its highest since Jun. 14, and from 67.98 at previous close. It opened at 67.81 to a dollar but fell to the day’s low of 67.88, before rising again. Most Asian currencies also rose against the greenback.

Indian Equities:-

  • The market continued to consolidate amid uncertainty over raising crude output in the OPEC decision due later in the day.
  • The Sensex gained 29.68 points at 35,462.07 and the Nifty rose 12.60 points to 10,753.70.

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.49% and the Hang Seng rose 0.19%. The Nikkei 225 lost 0.78%.
  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.33% while London’s FTSE 100 is up 0.30% and Germany’s DAX is up 0.16%.
  • The dollar index came off 11-month high, to end 0.3% lower yesterday, posting its biggest single-session loss since May 30 and was last trading down 0.2%, as some investors booked profits after a weak reading on the Philadelphia Federal Reserve’s manufacturing index, which fell to a one-and-a-half-year low, and 10-year U.S. bond yields came back to near 2.90%.
  • A rebound in pound sterling from its multi-week lows after Bank of England policymakers raised expectation of a rate hike in August also weighed on the greenback. The authority voted 6-3 to keep interest rates on hold, against a poll of 7-2 split.
  • OPEC members and other major producers are meeting in Vienna today to decide whether the recent run-up in oil prices and reduced concerns over excess supply warrant a production increase. While the world’s top two producers, Saudi Arabia and Russia, are in favor of increasing production, other members, including Iran, have appeared reluctant. The benchmark Brent crude oil price was last trading up 1.3% at $73.98 per barrel, after an overnight decline of 2.3%.