Jun 27 2018

Rupee off day’s low on likely RBI intervention

Financial Market Overview

27th June, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee came off the day’s low against the dollar in afternoon trade, as apparent intervention by the central bank limited a slump triggered by higher crude oil prices and continuous weakness in the Chinese yuan.
  • The rupee was last seen at 68.55 to a dollar, from 68.24 at previous close. The currency dropped to 68.5950 , leading the decline in the region and not far from its record-low of 68.87, also touched earlier in November 2016. However, it pared some losses on greenback sales by at least two state-run banks and a private lender, likely on behalf of the Reserve Bank of India.

Indian Equities:-

  • Benchmark indices extended losses in afternoon trade with the Nifty breaking 10,700 levels, dragged largely by oil stocks and ICICI Bank.
  • The 30-share BSE Sensex fell 202.07 points to 35,287.97 while the 50-share NSE Nifty dropped 77.05 points to 10,692.10 ahead of expiry of June futures & options contracts.

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 1.10% and Japan’s Nikkei 225 is lower by 0.31%.
  • European markets are mixed. The FTSE 100 is higher by 0.04%, while the DAX is leading the CAC 40 lower. They are down 0.48% and 0.21% respectively.
  • Brent oil crude price rose more than 2% yesterday to climb back above the $76-per-barrel mark and the U.S. benchmark crude rallied 3.5% to reclaim $70 per barrel, as the U.S. pushed allies to halt imports from Iran, which analysts said would constrain supply. The benchmark Brent crude oil price was last trading up 0.5% at $76.70 per barrel.
  • The yuan tumbled below 6.60 against the dollar amid heightening trade row with the U.S. and bets that China’s central bank will allow the currency to decline to counter the effects of trade frictions. The Chinese currency has lost more than 3% this month, in comparison with the 2.6% decline suffered in August 2015 when the nation’s central bank shocked financial markets by devaluing it. It was last trading down 0.3% at 6.59 against dollar.