Rupee Off Highs On Likely RBI Intervention

Rupee Off Highs On Likely RBI Intervention

03 Apr 2019 01:46 PM

Financial Market Overview

3rd April, 2019

Afternoon Update

Indian Rupee

  • The Indian rupee came off highs against the dollar in afternoon trade, as state-run banks stepped up greenback purchases likely on behalf of the central bank, limiting gains from improved risk appetite.
  • The rupee changed hands at 68.45 to a dollar against 68.75 at the previous close. The local unit opened little changed at 68.72, but jumped to the day’s high of 68.39, its highest since Mar. 19, before trimming some gains on dollar purchases by at least two state-run banks in smaller quantum, likely on the instructions of the Reserve Bank of India.

 Indian Equities

  • Indian shares hit all-time highs on Wednesday, continuing their rally into a fifth session as upbeat global factors added to investor risk appetite ahead of a central bank policy meeting outcome.
  • The broader NSE index was up 0.23% at 11,740.15, while the benchmark BSE index was 0.35% higher at 39,193.96.

Global Markets

  • Asian markets finished higher today with shares in China leading the region. The Shanghai Composite is up 1.24% while Hong Kong's Hang Seng is up 1.22% and Japan's Nikkei 225 is down 0.97%.
  • European markets are also higher today. The FTSE 100 is up 0.06% while France's CAC 40 is up 0.88% and Germany's DAX is up 1.35%.
  • Crude oil prices continued to rise, with the benchmark Brent crude oil contract hovering around $70 per barrel as supply from OPEC nations fell, while prospects of further sanctions against Iran and Venezuela could further lead to supply shortage. It was last trading 0.76% higher at $69.90 per barrel.
  • U.S. officials are set to resume trade talks with Chinese counterparts in Washington later today, after both the sides reported new progress in negotiations that took place in Beijing last week.