Sep 24 2018

Rupee off lows as likely Central Bank intervenes to shed losses

Financial Market Overview

24th September, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee came off lows against the dollar in afternoon trade, as likely central bank intervention helped limit decline prompted by trade war fears, as China vowed to fight a trade war with the U.S. after both imposed fresh round of import tariffs.
  • The rupee was trading at 72.5275 to a dollar from 72.20 at close on Sep. 21. It dropped to 72.73 levels so far today though further losses were limited on dollar sales by at least one large state-run and a private lender, likely on behalf of the central bank.

 

Indian Equities:-

  • Indian shares extended losses to a fifth session on Monday, dragged by financials and automobiles, while investors took a cautious stance ahead of a U.S. Federal Reserve meet on Tuesday.
  • The broader NSE index was trading 1.42 percent lower at 10984.40 while the benchmark BSE index was down 1.32 percent at 36356.77 as risk appetite was muted ahead of a two-day Fed meet that ends on Wednesday.

 

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite and the Nikkei 225 are closed today. The Hang Seng lost by 1.62%.
  • European markets are lower today with shares in Germany off the most. The DAX is down 0.46% while London’s FTSE 100 is off 2.07% and France’s CAC 40 is lower by 0.27%
  • The dollar index was trading flat against Friday’s gains of 0.3%, ahead of a near-certain rate hike by the Federal Reserve due later this week. The benchmark Brent crude oil contract was last trading almost 2% higher at $80.32 per barrel, trading at highest levels since May, as lower U.S. crude inventories and looming sanctions on Iran outweighed reports of major oil producers mulling to increase output by 500,000 barrels per day.
  • Demand for safe-haven currency rose after a Wall Street Journal report over the weekend said China had cancelled trade talks that were planned for the coming days.
  • The offshore yuan was last down 0.27% at 6.8660 against the dollar. Other Asian currencies also traded weaker against the greenback.