Rupee Remains Higher As Dovish Remarks By Fed Helped Lift Investors’ Risk Appetite

Rupee Remains Higher As Dovish Remarks By Fed Helped Lift Investors’ Risk Appetite

19 Jul 2019 01:51 PM
 

Financial Market Overview

19th July, 2019

 Afternoon Update 

Indian Rupee

  • The Indian rupee remained higher against the dollar in afternoon session, as investors’ risk appetite improved after remarks from two Federal Reserve policymakers reinforced bets of a 50-basis-point rate cut later this month.
  • The rupee changed hands at 68.80 to a dollar against 68.95 at previous close. The local unit opened at 68.75 and briefly slipped to a low of 68.8550 till now.

Indian Equities

  • Indian equities were trading lower in the afternoon session, dragged down by auto and financial stocks, while Yes Bank Ltd extending losses after posting weak quarterly results.
  • The broader NSE index was down 1.35% at 11,440.05, while the benchmark BSE index was 1.26% lower at 38405.88.

Global Markets

  • Asian equities and currencies rallied on the back of the Fed comments that drove Wall Street higher overnight.
  • Asian markets finished broadly higher today with shares in Japan leading the region. The Nikkei 225 is up 2.00% while Hong Kong's Hang Seng is up 1.11% and China's Shanghai Composite is up 0.79%.
  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.78% while France's CAC 40 is up 0.80% and London's FTSE 100 is up 0.64%
  • Crude oil prices climbed after a four-day slump amid rising tensions in the Middle East after the U.S. Navy destroyed an Iranian drone in the Strait of Hormuz. The benchmark Brent crude contract was last trading 1.24% higher at $62.70 per barrel, having fallen 2.7% in the previous session.
  • The dollar index declined 0.4% yesterday on the back of comments by New York Fed President John Williams where he signalled the Federal Reserve need to act quickly when rates are low and economic growth is slowing. The dollar index was last at 96.90.
  • Traders now await Federal Open Market Committee member James Bullard’s speech later in the day.

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