Rupee Off Highs On Banks' Dollar Bids As NDA Win Factored In

Rupee Off Highs On Banks' Dollar Bids As NDA Win Factored In

23 May 2019 01:37 PM

Financial Market Overview 

23rd May, 2019

Afternoon Update 

Indian Rupee

  • The Indian rupee came off highs against the dollar in volatile afternoon trade, as state-run banks and foreign banks stepped up greenback purchases, trimming initial surge triggered after Prime Minister Narendra Modi-led alliance was set to come to power for a second term.
  • The rupee changed hands at 69.67 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 69.38, before touching the day’s low of 69.73 on profit booking.

Indian Equities

  • Indian shares surged to record highs on Thursday morning, as Prime Minister Narendra Modi's National Democratic Alliance (NDA) was way ahead of its main opposition United Progressive Alliance (UPA), as vote-counting showed in the world's largest democracy.
  • The broader NSE index was up 0.74% at 11,824.40, while the benchmark BSE index was 0.68% higher at 39,377.59.

Global Markets

  • Asian shares were lower amid lingering U.S.-China trade tensions. The Hang Seng was 1.74% lower and the Nikkei 225 lost 0.62%. The Shanghai Composite lost 1.36%.
  • European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.30% while France's CAC 40 is off 1.107% and London's FTSE 100 is lower by 0.74%.
  • The dollar index jumped to a near four-week high to trade 0.2% higher at 98.20. U.S. Federal Reserve released the minutes of latest minutes yesterday, where officials remained firmly committed to a "patient" policy stance.
  • The benchmark Brent crude price traded 0.7% lower at $70.47 per barrel.
  • The yuan weakened on Thursday as the Sino-U.S. dispute over trade spilled into the technology sector, but the Chinese central bank's firm fixing kept losses in check. The spot yuan changed hands at 6.9139.

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