Rupee extends fall on Dollar demand by Oil importers

Rupee extends fall on Dollar demand by Oil importers

08 Jun 2018 02:15 PM
Myforexeye Research Report

Financial Market Overview

08th June, 2018

Noon Update:-                                                                                  



  • Indian rupee extended losses against the dollar in afternoon trade, dragged by greenback demand from foreign and state-run banks, likely on behalf of oil importers. Overnight rally in global crude oil prices to a one-week high continued to weigh on sentiment for the local unit as well.
  • The rupee was last seen at 67.55 to a dollar from 67.12 at previous close. It opened at 67.46 before slipping further to 67.57, also lowest since May 31. Earlier in the session, dollar sales by at least one large private lender and a handful of state-run lenders, likely on behalf of the central bank, may have slowed pace of decline in the rupee.

Indian Equities:-

  • The market has extended its fall from the morning, with the Sensex falling more than 150 points, while the Nifty is trading around 10,700.
  • The Sensex is down 177.30 points at 35,293.70, and the Nifty falls by  50.65 points at 10717.70.

Global Markets:-

  • Asian markets finished broadly lower today with shares in Hong Kong leading the region. The Hang Seng is down 1.83% while China's Shanghai Composite is off 1.36% and Japan's Nikkei 225 is lower by 0.56%.
  • European markets are lower today. The Germany's DAX is down 1.29% , London's FTSE 100 falls 0.61% and the France's CAC is trading  lower by 0.49%.
  • The benchmark Brent crude oil prices rose 2.6% at $77.32 per barrel, also highest since Jun.1, amid reports of Venezuela struggling to meet its supply obligations and voluntary output cuts led by producer cartel Organization of the Petroleum Exporting Countries.
  • Markets now await the top oil producers’ meet led by the OPEC on Jun. 22- Jun. 23 in Vienna for further cues on oil production supply.
  • The dollar index, measured against a basket of six major currencies, was trading higher at 93.57, recovering from an overnight decline of 0.28%. Traders now await developments at the 44th G7 summit that will be held at Canada for two days beginning today.