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Jan 04 2018

Rupee off highs on likely RBI intervention

Financial Market Overview

04th January, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee came off a near 30-month high against the dollar, as the central likely stepped in to curb the gains triggered by strong domestic shares and custodian inflows.
  • The rupee was  last seen at 63.3950 to a dollar, against 63.53 at close yesterday. The currency briefly fell to 63.61, before rebounding to 63.37, the highest since Jul.15, 2015. However, sustained dollar purchases by at least one large state-run bank, likely on behalf of the central bank, has made the 63.37-mark a tough resistance for the domestic currency. Other Asian currencies were mixed against the dollar.

Indian Equities:-

  • Benchmark indices have continued to hold on to the strong momentum, with the Sensex trading over 100 points higher, while the Nifty is hovering near the 10,500-mark.
  • The Sensex is up 146.09 points or 0.43% at 33939.47, and the Nifty up 47 points or 0.45% at 10490.20. The market breadth is positive as 1771 shares have advanced, 956 shares declined, and 451 shares are unchanged.

Global Markets:-

  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.96% while France’s CAC 40 is up 0.78% and London’s FTSE 100 is up 0.11%.
  • Asian markets finished broadly higher today with shares in Japan leading the region. The Nikkei 225 is up 3.26% while Hong Kong’s Hang Seng is up 0.57% and China’s Shanghai Composite is up 0.49%.
  • The dollar index, which measures the greenback against a basket of six major rivals, rose 0.3% in an overnight trade, following upbeat U.S. data and supportive minutes from the Fed’s December policy meeting. The index was last trading little changed.
  • China’s services sector activity expanded at its fastest pace in over three years in December on solid growth in new business, with the outlook improving to a six-month high, a private sector survey showed on Thursday. The Caixin/Markit services purchasing managers’ index (PMI) rose to 53.9 in December, from 51.9 in November and the highest reading since August 2014. A reading above 50 indicates growth, and a reading below signals contraction on a monthly basis.