Oct 23 2018

Rupee Off Lows On Exporters’ Dollar Sales

Financial Market Overview

23rd October, 2018

Noon update

Indian Rupee:-

  • The Indian rupee trimmed some losses against the dollar in afternoon trade, as greenback sales by exporters helped offset early fall from importers’ demand and continuous decline in local shares.
  • The rupee changed hands at 73.66 to a dollar against 73.5550 at close yesterday. It opened lower at 73.70 and extended losses to 73.8225.

Indian Equities:-

  • Indian shares fell for the fourth consecutive session on Tuesday, pulled down by oil marketing companies following a rating downgrade by brokerage Nomura, as investors remained jittery over macro concerns.
  • The broader NSE index was down 0.74% at 10,169.00, while the benchmark BSE index was 0.53% lower at 33,953.16.
  • A string of defaults at a major non-banking financial company has battered the sector amid a liquidity crunch, while higher crude prices and weaker rupee continue to weigh on the trading sentiment.

Global Markets:-

  • Asian shares are trading lower today. The Hang Seng falls 2.93% and Shanghai Composite is down 2.26%.
  • European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.27% while France’s CAC 40 is off 0.94% and London’s FTSE 100 is lower by 0.69%.
  • The Brent crude oil contract was trading 0.63% lower below the $80-per-barrel mark, extending overnight fall of 0.8%, after Saudi Arabia’s Energy Minister Khalid al-Falih said the Arab nation would play a “constructive and responsible role” in world energy markets. It was last trading at $79.33.
  • Italy expects the European Union decision on budget due later today after the Commission indicated its displeasure with Italy’s plans last week, stating that it is a serious breach of, and an “unprecedented” deviation from, EU spending rules.
  • The dollar index rose 0.1% today helped by rising safe-haven bets as British pound fell on Brexit negotiations with the European Union over Northern Ireland and as the euro continued its depreciation.