Nov 12 2018

Rupee Extends Fall As U.S. Data Boosts Fed Rate Hike Bets

Financial Market Overview

12th November, 2018

Noon update

Indian Rupee:-

  • The Indian rupee extended its fall against the dollar in afternoon trade, in line with regional peers, as robust U.S. economic data boosted bets over faster pace of interest rate hikes in the world’s biggest economy. An uptick in crude oil prices also weighed on the local currency.
  • The rupee changed hands at 73.01 to a dollar, against 72.49 at close on Nov. 9. It opened lower at 72.72 and extended fall to 73.06.

Indian Equities:-

  • Indian shares were largely unchanged on Monday as a weak rupee boosted IT stocks, but losses in financials and auto stocks capped the gains.
  • The broader NSE index was down 0.02% at 10,582.80, while the benchmark BSE index was 0.09% lower at 35,125.72.

Global Markets:-

  • Asian shares are trading higher. The Hang Seng gains 0.03% while the Shanghai Composite is 1.22% higher.
  • European shares are also trading higher today. The FTSE 100 gained 1.10%, CAC gained 0.65% and the DAX was 0.52% up.
  • The benchmark Brent crude oil prices, which fell to a seven-month low of $69.13 per barrel on Nov. 9, rebounded by over 2% today to trade at $71.77 after Saudi Arabia, one of the top oil exporters, announced a cut in supply for December.
  • The dollar index extended gains to a 16-month high today, after posting a fourth straight weekly rise last week. It was last trading at 97.38.
  • The euro and pound sterling fell at least half-a-percent each against the greenback on uncertainty surrounding a Brexit deal.
  • The yuan slipped 0.2% today after the People’s Bank of China lowered the midpoint rate for the third straight day. Mid-point rate was set at 6.9476 per dollar, weaker than the previous fix of 6.9329.