Oct 12 2018

Rupee Off-Highs On Foreign Banks, Importers’ Dollar Demand

Financial Market Overview

12th October, 2018

Noon update

Indian Rupee:-

  • The Indian rupee was trading off highs against the dollar in afternoon session, as greenback purchases by foreign banks and importers ate into early gains tracking a weak dollar following softer-than-expected U.S. inflation data.
  • The rupee was at 73.78 to a dollar, against 74.12 at close yesterday. Earlier today, the rupee rose to a one-week high of 73.60 before paring some gains.

Indian Equities:-

  • Indian shares rebounded nearly 2 percent on Friday, as the rupee strengthened due to an overnight fall in crude prices, a day after markets posted the worst start to the October quarter in a decade following the global rout.
  • The broader NSE index was up 2.19% at 10,458.45 and the benchmark BSE index was 2.09% higher at 34,710.12.
  • Both indices are poised to end the week higher for the first time in six weeks. The sharp global selloff on Thursday made it the worst start to the October quarter for the NSE index since 2008.

Global Markets:-

  • Asian markets are higher today. The Hang Seng gains 2.10% and Shanghai Composite is up 0.91%.
  • European markets are mixed today. The German DAX is up 1.05% and France’s CAC 40 is up 0.90% while London’s FTSE 100 is down 7.64%.
  • The dollar index was trading steady, after declining 0.5% overnight as U.S. consumer prices rose 2.3% in September, slower than the expected pace of 2.4%, easing concerns about the Federal Reserve stepping up the pace of monetary tightening.
  • Crude oil prices snapped a two-day fall to trade 1.13% higher at $81.17 a barrel as concerns over demand eased post solid Chinese crude oil import data.
  • China’s onshore yuan currency weakened against the dollar on Friday as unexpectedly strong China exports data renewed anxiety over the Sino-U.S. trade war. The PBoC set the yuan mid-point at 6.9120, the weakest fixing since March 10, 2017 prior to trade on Friday.