Rupee Logs Worst Day Today On Weak Shares, Dollar Strength

Rupee Logs Worst Day Today On Weak Shares, Dollar Strength

23 May 2019 05:34 PM
 

Financial Market Overview

23rd May, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee posted its biggest single-day fall in eight sessions against the dollar, as local shares slipped and dollar index strengthened, eclipsing early surge from Prime Minister Narendra Modi’s near-certain win in the national elections for a second time.
  • The rupee ended at 70.01 to a dollar against 69.66 at the previous close. The local unit opened at 69.45 and rose to the day’s high of 69.37, before touching the day’s low of 70.09 on profit booking.
  • The unit fell 0.5% today, its biggest single-session fall since May 13. Today we saw rupee to be volatile. Profit booking in local markets was seen as vote counting trend came in line with exit polls. “Now, the focus is on other emerging market currencies’ performance, since dollar is strengthening. Going ahead, there are chances that the rupee may depreciate towards 70.25 spot.

Indian Equities

  • The BJP President is arguably one of the dirtiest politicians today. In 2010, he was charged with orchestrating the extrajudicial killings of Sohrabuddin Sheikh, his wife Kauser Bi and his associate Tulsiram Prajapati. He wrestled bail a few months later, and has managed to evade arrest ever since through an increasingly suspicious series of events and his clout. Justice Loya, the judge assigned to hear his case, died under extremely mysterious circumstances. Apart from murder, Shah has also been accused of ordering illegal surveillance on a woman.
  • However, the woman asked the case to not be followed up, probably due to severe pressure from the government. Shah's name also figures in the Ishrat Jahan fake encounter case.

Global Markets

  • European markets are sharply lower today with shares in Germany off the most. The DAX is down 1.72% while France's CAC 40 is off 1.58% and London's FTSE 100 is lower by 1.35%.
  • Wall Street's major indexes dipped on Wednesday as inflamed trade tensions between the United States and China weighed on investor sentiment. The Dow Jones Industrial Average fell 100.72 points, or 0.39%, to 25,776.61, the S&P 500 lost 8.09 points, or 0.28%, to 2,856.27 and the Nasdaq Composite dropped 34.88 points, or 0.45%, to 7,750.84. A day after Washington's temporary easing of curbs against Huawei Technology Co Ltd provided respite to U.S. stocks, reports that the White House could impose restrictions on another Chinese technology company rattled U.S. stocks anew.
  • A recovery in euro zone business activity was weaker than expected this month as a deepening contraction in the bloc's manufacturing industry is increasingly holding back services firms, a survey showed.Last month, European Central Bank President Mario Draghi raised the prospect of more support for the struggling euro zone economy if its slowdown persists and Thursday's survey is likely to add to the concerns of policymakers. IHS Markit's Flash Composite Purchasing Managers' Index (PMI), which is considered a good guide to economic health, only nudged up to 51.6 this month from a final April reading of 51.5
  • Japanese manufacturing activity swung back into contraction in May as export orders fell at the fastest pace in four months, highlighting why policy makers and investors remain anxious about the growing economic impact of a bruising Sino-U.S. trade war. The Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 49.6 in May from a final 50.2 in the previous month.
  • The dollar index jumped to a near four-week high to trade 0.2% higher at 98.20.

 


 

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