Sep 26 2018

Rupee rises due to easing oil prices and dollar selling by exporters

Financial Market Overview

26th September, 2018

Evening Coffee

Rupee:-

  • The Indian rupee rose for the first time in three days against the dollar, as easing crude oil prices and exporters’ greenback sales outweighed pressure from month-end dollar demand.
  • The rupee ended at 72.6050 to a dollar, against 72.69 at close yesterday. The currency moved in a fairly tight 72.53-72.75 range today quite uncommon given the recent volatile movement, which is probably because of traders wanting to square off positions ahead of the Fed decision.

 

Indian Equities:-

  • Indian shares ended lower on Wednesday, dragged by consumer goods and IT stocks, while investors awaited cues from a U.S. Federal Reserve meeting that ends later in the day.
  • The benchmark BSE index closed down 0.30 percent at 36,542.27 while the broader NSE index ended 0.12 percent lower at 11,053.8. Both the indexes fell for a sixth session in seven.

 

Global Markets:-

  • European markets are mixed today. The French CAC 40 is up 0.25% while London’s FTSE 100 looses 0.11%. The DAX is off 0.23%.
  • The dollar index was last trading up 0.2% ahead of the Fed outcome amid anticipation of a widely expected quarter percentage interest rate increase, which pushed yield on the benchmark 10-year U.S. Treasury to 3.10% yesterday, its highest since mid-May.
  • The benchmark Brent crude oil contract was last trading off 0.3% at $81.62 per barrel after rising to $82.55 yesterday, its highest since November 2014, amid assurances from U.S. officials of strong supply in markets before its sanctions on Iran kick in.
  • The European Union’s negotiator Michel Barnier said on Wednesday that he was working for a Brexit deal and a future cooperation model with Britain that would respect the UK’s sovereignty, adding that he was working for an orderly Brexit and a new partnership that respects the UK’s sovereignty, as well as the founding principles of the EU, such as the integrity of the single market.