Rupee Extends Fall On Foreign Banks’ Dollar Purchase, Risk-Off

Rupee Extends Fall On Foreign Banks’ Dollar Purchase, Risk-Off

13 Aug 2019 01:56 PM
 

Financial Market Overview 

13th August, 2019 

Afternoon Update 

Indian Rupee

  • The Indian rupee fell further against the dollar in afternoon trade on demand for the greenback from foreign banks and on global risk-off sentiment amid worries over Sino-U.S. trade talks and political unrest in some regions.
  • The rupee was trading at 71.20 to a dollar against 70.80 in the previous session. The local unit opened at 71.19, and briefly rose to day’s high of 71.03 on dollar sales by a state-run lender, before dipping further in the afternoon to 71.27, its lowest since Feb. 27.

Indian Equities

  • Indian shares slipped on Tuesday, as investors remained wary in the absence of any announcement about a government fiscal stimulus package and ahead of key inflation data.
  • The broader NSE index fell 0.65% to 11,037.20, while the benchmark BSE index tumbled 0.71% to 37,315.28.

Global Markets

  • Asian markets finished broadly lower today with shares in Hong Kong leading the region. The Hang Seng is down 2.07% while Japan's Nikkei 225 is off 1.11% and China's Shanghai Composite is lower by 0.63%.
  • European markets are lower today with shares in Germany off the most. The DAX is down 0.43% while France's CAC 40 is off 0.37% and London's FTSE 100 is lower by 0.30%.
  • Oil prices were lower in Asian trading as expectations that major producers will continue to reduce supplies ran into worries about sluggish economic growth. The benchmark Brent crude oil contract was last trading 0.27% lower at $58.41 per barrel.
  • Asian currencies fell as investor appetite for risk assets was dented amid a plunge in the Argentine peso, ongoing protests in Hong Kong and expectations of a delay in the U.S.-China trade deal.

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