Sep 17 2018

Rupee snaps 2-Day gains weighed down by importers dollar demand

Financial Market Overview

17th September, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee fell for the first time in three sessions against the dollar, weighed down by importers’ dollar demand amid muted reaction to the federal government’s recently announced measures to boost inflows and stem the currency’s depreciation.
  • The rupee closed at 72.51 to a dollar, against 71.85 at close on Sep. 14. It fell to the day’s low of 72.70 but managed to recoup some losses on repeated dollar sales by private and state-run banks at various levels, likely on behalf of the central bank. It then reached the day’s high at 72.30 after a finance ministry official said the government will announce a list of items for import curbs this week.

Indian Equities:-

  • Indian shares fell more than 1 percent today after two straight sessions of gains, as measures outlined by the government on Friday to stem the rupee’s steep decline failed to boost investor sentiment, while weak Asian shares also weighed on the market.
  • The broader NSE index fell 1.19 percent, or 137.45 points, to 11,377.75, while the BSE index declined 1.33 percent, or 505.13 points, to 37,585.51.

Global Markets:-

  • European markets are trading mixed today. The SMI is off 0.45%, the Germany’s DAX lost 0.32%, London’s FTSE100 is down by 0.10%,and the France’s CAC40 fell 0.03% while the Spain’s IBEX35 gains 0.48% and the Euro zone’s Euro STOXX50 is even.
  • Most other Asian currencies also ended weaker against the dollar after reports that the U.S. President Donald Trump may announce new tariffs on Chinese imports as early as today.
  • The dollar index was last trading off 0.2% against a 0.4% gain overnight following upbeat U.S. economic data. Investors now await Federal Reserve’s policy meeting due next week, where the authority is expected to hike rates for a third time this year.
  • Euro zone consumer price inflation for August went unrevised on Monday, underlining the case for the European Central Bank to wind down its asset purchase program this year. The bloc’s statistics agency Euro-stat said the CPI rose 2.0% in August from the same month a year earlier, matching consensus.