Rupee Extends Decline As Shares Slump Post Weak China Data

Rupee Extends Decline As Shares Slump Post Weak China Data

02 Jan 2019 02:00 PM

Financial Market Overview

2nd January, 2019

Noon update

Indian Rupee:-

  • The Indian rupee extended losses against dollar in afternoon trade, as weak Chinese factory activity weighed on local and regional shares, raising concerns of foreign fund outflows.
  • The rupee changed hands at 69.94 to a dollar, against 69.4475 at yesterday’s close. The currency opened lower at 69.52 and extended losses to 69.97 against the dollar.

 Indian Equities:-

  • Indian shares fell on Wednesday as investors booked profits and exercised caution before corporate results begin to roll in next week, while local indexes also tracked a decline in broader Asia on fears that economic momentum in the country was slowing.
  • The NSE index was down 0.97% at 10,804.45, while the benchmark BSE index was 0.89% lower at 35,931.84.

 Global Markets:-

  • Asian markets finished broadly lower on Friday with shares in Hong Kong leading the region. The Hang Seng is down 2.82% while China's Shanghai Composite is off 1.15% and Japan's Nikkei 225 is lower by 0.31%.
  • European markets are also lower today. The FTSE 100 lost 1.70%, the CAC 40 was down 1.96% while DAX lost 1.12% and IBEX35 was down 1.53%.
  • The dollar index traded 0.3% lower at 96.05 amid no signs of a workable plan that can bring an end to the ongoing U.S. federal shutdown. U.S. President Donald Trump over the weekend invited Republican and Democrat congressional leaders for a meeting amid the ongoing federal shutdown.
  • Meanwhile, the benchmark Brent crude oil contract fell 0.95% to $53.29 per barrel, tracking jump in U.S. production and on concerns of slowdown in global economic growth.
  • Investors now await U.S. nonfarm payroll data and comments from Fed Chairman Jerome Powell on Jan. 4. Powell is participating in panel titled "U.S. Federal Reserve: Joint Interview" before the American Economic Association, Allied Social Science Association annual meeting.





Date : 2-Jan-2019

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