Oct 17 2018

Rupee Extends Losses In Thin Trade Ahead Of Fed Minutes

Financial Market Overview

17th October, 2018

Noon update

Indian Rupee:-

  • The Indian rupee extended losses against the dollar in low-volume trade, as investors remain cautious before the release of the Federal Reserve’s September policy minutes due later today.
  • The rupee changed hands at 73.51, against today’s open of 73.41. The unit traded in a 19 paisa range so far today in a choppy trade.
  • Dollar demand from importers caused rupee to slump in early trade, from which it recovered briefly as few exporters sold the greenback. However, tepid volumes had led to a choppy session.

Indian Equities:-

  • Indian shares rose over 1% on Wednesday to a near two-week high before paring gains, unable to play catch-up with global markets, as liquidity concerns dragged down non-banking financial stocks.
  • The broader NSE index was up 0.04% at 10,588.75 and the benchmark BSE index was trading 0.21% higher at 35,237.25.
  • Foreign investors had net sold $2.59 billion worth of equities this month as of Tuesday, compared with a net sale of $1.49 billion last month.

Global Markets:-

  • Asian markets finished broadly higher today with shares in Japan leading the region. The Nikkei 225 is up 1.29% while China’s Shanghai Composite is up 0.60% and Hong Kong’s Hang Seng is up 0.07%.
  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.27% while Germany’s DAX is up 0.16% and London’s FTSE 100 is up 0.10%.
  • The Brent crude prices were trading 0.36% higher at $81.70 per barrel. It fell below $80 a barrel mark yesterday to $79.80, but rebounded on the unexpected decline in U.S. crude inventories and concerns about a diplomatic row between the U.S. and Saudi Arabia over the disappearance of a journalist.
  • The dollar index was last trading 0.1% higher. Investors’ focus will be on the minutes of the Federal Reserve’s latest policy meeting. The Fed at the September meeting raised rates for the third time this year and signaled that it was on course for another increase in December.
  • Chinese yuan fell to 6.92, down 0.2% against previous close, tracking some strength in the dollar today as investors digest ongoing trade disputes between the two economies.