Aug 30 2018

Rupee slumped to a lifetime low tracking losses in emerging currencies and oil price surge

Financial Market Overview

30th August, 2018

Evening Coffee:-                                                                                  

MARKETS AT ClOSE:-

Rupee:-

  • Indian rupee slumped to a lifetime low for a second day against the dollar, tracking losses in emerging market currencies and as surging crude oil prices fueled concerns of wider current account deficit at home.
  • The rupee settled at a record closing low of 70.74 to a dollar against 70.59 at close yesterday. It fell to an all-time low of 70.8550 earlier today, surpassing the overnight record level of 70.64. However, an apparent intervention by the central bank helped the local unit to find some lost ground.

Indian Equities:-

  • Indian shares ended marginally lower on Thursday, as gains in consumer and healthcare were offset by losses in financial stocks, in volatile trade due to expiry of derivatives contracts at the end of the session..
  • The benchmark BSE index closed down 0.08 percent at 38,690.10, while the broader NSE index ended 0.13 percent lower at 11,676.8. Bajaj Finance ltd ended 1.9 percent lower, while Indusind Bank Ltd closed 1.6 percent weaker.

Global Markets:-

  • European markets are lower today. The Spain’s IBEX35 is down 0.94%, the Eurozone’s Stoxx50 fell by 0.75%, the London’s FTSE100 is off 0.66% , DAX fells 0.60% the CAC40 is off 0.48% and the SMI is trading lower by 0.43%..
  • The benchmark Brent crude oil price remained at a seven-week high, rising 0.6% to $77.62 per barrel, extending its overnight surge amid falling U.S. inventories. Since the beginning of last week, Brent has risen over 7%. Data released earlier this month showed India’s crude import bill jumped 76% last month, prompting few analysts to raise their forecasts for India’s current account deficit to 3% of the gross domestic product.
  • The dollar index was trading little changed after closing 0.1% lower overnight, hovering near one-month lows, on account of a jump in the British pound following positive comments from the European Union’s chief negotiator that the common bloc was prepared to offer Britain a partnership.
  • German inflation rose in line with expectations last month, according to a report released on Thursday. The consumer price index rose2%last month, compared with the same month a year earlier, according to data from the Federal Statistics Office, matching the previous month’s increase.