Rupee Snaps 6-Week Fall On Oil Slump, Hopes Of Govt Steps

Rupee Snaps 6-Week Fall On Oil Slump, Hopes Of Govt Steps

12 Oct 2018 06:17 PM
Myforexeye Research Report

Financial Market Overview

12th October, 2018

Evening coffee

Indian Rupee:-

  • The Indian rupee posted its first weekly rise in seven weeks against the dollar, underpinned by a corresponding decline in global crude oil prices and on anticipation of further steps from authorities to halt the local currency’s slump and limit the country’s widening current account deficit.
  • For the session, the rupee ended up 0.8% at 73.56 to a dollar, against 74.12 at close yesterday and well off an intraday lifetime low of 74.4850 hit yesterday. The day also marked the rupee’s largest single-session gain since Sep. 19 on the back of gains tracking a weak greenback following softer-than-expected U.S. inflation data.

Indian Equities:-

  • Indian shares jumped over 2% on Friday, the most since late May 2016, with a stronger rupee and an overnight fall in crude prices bringing some relief after the previous session's sharp sell-off.
  • The benchmark BSE index rose 2.15% to 34,733.58, and closed the week 1 percent higher. The broader NSE index climbed 2.32% to 10,472.50, ending the week 1.5% higher.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.84% while Germany's DAX is up 0.82% and London's FTSE 100 is up 0.77%.
  • The dollar index was trading 0.1% higher, after declining 0.5% overnight as U.S. consumer prices rose 2.3% in September, slower than the expected pace of 2.4%, easing concerns about the Federal Reserve stepping up the pace of monetary tightening. The index was down 0.5% so far for the week.
  • Crude oil prices have dropped almost 4% this week, its first weekly decline in five, largely in reaction to the International Monetary Fund’s downgrade of its global economic growth forecasts for 2018 and 2019 earlier this week. The move led to fears of a corresponding slowdown in oil demand. Brent crude futures were last trading at $80.80.




Date : 12-Oct-2018