Rupee Recovers From Losses Incurred After MPC Announced Rate Cut

Rupee Recovers From Losses Incurred After MPC Announced Rate Cut

07 Feb 2019 02:10 PM

Financial Market Overview

7th February, 2019

Noon update

Indian Rupee:-

  • The Indian rupee was trading higher against the dollar, recouping early losses triggered after the MPC unexpectedly cut key interest rates.
  • The rupee changed hands at 71.52 to a dollar, against 71.5525 at previous close. The currency opened at 71.7275 and fell immediately to as much as 71.75 to dollar after the policy decision. However, it then recovered and rose to 71.34.

Indian Equities:-

  • Indian shares remained higher after India's central bank on Thursday unexpectedly lowered interest rates and, as anticipated, shifted its stance to neutral to boost a slowing economy after a sharp slide in the inflation rate.
  • The broader NSE index was up 0.14% at 11,077.40, while the benchmark BSE index was 0.16% higher at 37,033.90.

 Global Markets:-

  • Asian shares were subdued following a weeklong holiday in China for the Chinese New Year. Markets in Hong Kong are also closed today. Japan's Nikkei 225 finished lower by 0.59%.
  • European markets are lower today. The CAC 40 is down 0.03%, London's FTSE 100 is down 0.14% and Germany's DAX is up 0.60% while Spain's IBEX35 is down 0.23%.
  • Crude oil prices continued to trade in a thin range, as U.S. inventories rose, while OPEC-led supply cut capped any major rise in prices. The benchmark Brent crude oil contract was 0.81% lower at $62.18 per barrel, after rising 1.15% overnight.
  • The dollar index was trading 0.1% higher at 96.54 extending overnight gains of 0.3%, tracking decline in the euro followed by disappointing December industrial orders in Germany.
  • Investors now await comments from Federal Reserve chief Jerome Powell, who will speak at an event hosted by the Federal Reserve Bank of Richmond Charlotte branch later today.




Date : 7-Feb-2019

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