Rupee Slides In Thin Trade On State-Run Banks' Dollar Demand

Rupee Slides In Thin Trade On State-Run Banks' Dollar Demand

16 Jul 2019 01:49 PM

Financial Market Overview

16th July, 2019 

Afternoon Update 

Indian Rupee

  • The Indian rupee was trading marginally lower against the dollar in thin afternoon trade, as state-run banks bought the greenback in small quantum, likely on behalf of importers. However, broad market movement remained muted ahead of U.S. retail sales data and speeches by Federal Reserve officials.
  • The rupee changed hands at 68.63 to a dollar against 68.5350 at previous close. The local unit opened at 68.56 and has traded in narrow range of 12 paise so far.

Indian Equities

  • Indian shares edged higher in volatile trade on Tuesday in broad-based gains tracking broader Asian shares as investors awaited U.S. retail sales data and corporate earnings to gauge the health of the world's biggest economy.
  • The broader NSE index was up 0.36% at 11,630.25, while the benchmark BSE index was 0.34% higher at 39,036.75.

Global Markets

  • Asian shares finished mixed as of the most recent closing time. The Hang Seng gained 0.04% while the Shanghai Composite lost 0.16% and Nikkei lost 0.69%.
  • European markets are mixed today. The FTSE 100 is up 0.06% while the DAX gains 0.02%. The CAC 40 is off 0.05%.
  • The benchmark Brent crude oil contract was steady as more production facilities returned to operation in the U.S. Gulf after Hurricane Barry swept through over the weekend, while Chinese economic data dimmed the outlook for crude demand. The contract was last trading steady at $66.44 per barrel.
  • Most Asian currencies were steady ahead of the U.S. retail sales and industrial output data, which could potentially influence Fed rate cut bets. Economists expect a 0.1% month-on-month increase in headline retail sales and a 0.3% growth in the more closely watched control retail sales. Industrial output growth is pegged at 0.1%.
  • Traders further await Federal Reserve Chairman Jerome Powell’s speech due later in the day. The speech comes after Powell in his testimony last week set the stage for an interest rate cut at the upcoming July policy meet.