Oct 26 2018

Rupee Off Lows On Foreign Banks’ Dollar Sales

Financial Market Overview

26th October, 2018

Noon update

Indian Rupee:-

  • The Indian rupee came off lows against the dollar in afternoon trade, as greenback sales by foreign banks, likely for corporate clients, trimmed some losses triggered from weak global risk appetite.
  • The rupee changed hands at 73.30 to a dollar, against 73.2750 at close yesterday. It slipped to 73.46 in early session and has traded in 16 paisa band so far.

Indian Equities:-

  • Indian shares extended falls on Friday to hit a fresh seven-month low, in line with broader Asia as investors fled for safety amid lingering fears about global trade and economic growth with broader NSE index declining as much as 1.2% and benchmark BSE index declining 1.1%.
  • The broader NSE index the benchmark BSE index both were last 0.35% down at 10089.80 and 33572.68 respectively.
  • A host of factors including a depreciating rupee, a tick-up in oil prices overnight, and weak cues from global markets are weighing on the market.

Global Markets:-

  • Asian shares are lower today. The Hang Seng falls 1.15% and the Shanghai Composite is down 0.19%.
  • European markets are sharply lower today with shares in France off the most. The CAC 40 is down 1.67% while Germany’s DAX is off 1.51% and London’s FTSE 100 is lower by 1.31%.
  • The Brent crude oil contract headed for its third weekly fall after world’s biggest oil producer Saudi Arabia pledged to keep oil markets well supplied in the wake of looming U.S. sanctions on Iran from November. The contract was trading down 0.70% at $76.35 per barrel, after rising as much as 0.9% yesterday weighed by global risk-off.
  • The dollar index was last trading off 0.1%, as investors awaited U.S. advance gross domestic product numbers, due today, for further cues.
  • The Chinese onshore yuan was last trading at 6.96 level, after falling to 22-month low in early trade. China’s central bank fixed yuan mid-point at 6.95 against dollar. Meanwhile, further losses in the Chinese currency was capped after People’s Bank of China’s vice governor, Pan Gongsheng said the nation’s healthy economic fundamentals and ample foreign exchange reserves will keep yuan stable.