Jun 06 2018

Rupee stays higher ahead of RBI monetary policy decision

Financial Market Overview

06th June, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee remained higher against the dollar in thin afternoon trade, even as investors await outcome of the nation’s rate-setting Monetary Policy Committee’s policy review later today.
  • The rupee was last seen at 67.06 to a dollar, from 67.15 at previous close. It opened at 67.08 and has so far traded in 12-paisa band. Other Asian currencies also traded higher against the dollar.
  • Most economists polls expect the six-member panel to maintain status-quo, with a change in stance towards tightening in order to support economic growth, while an increasing number of economist expects the panel to raise interest rates by 25 basis points.

Indian Equities:-

  • Indian shares perked up on Wednesday, as value buying set in ahead of a decision on monetary policy by the central bank where it is widely expected to keep benchmark interest rates on hold.
  • The Sensex is up 208.51 points at 35,111.72, and the Nifty gains 66.75 points at 10659.90.

Global Markets:-

  • Asian markets finished higher today with shares in Hong Kong leading the region. The Hang Seng is up 0.48% while Japan’s Nikkei 225 is up 0.38% and China’s Shanghai Composite is up 0.03%.
  • European markets are mixed today. The FTSE 100 is up 0.29% while the CAC 40 gains 0.09%. The DAX is off 0.02%.
  • The dollar index measured against basket of six-major currencies was trading down 0.3%, extending overnight decline of 0.1%, tracking gains in euro.
  • The single currency rose to a two-week high of 1.1770 against dollar today, after European Central Bank’s chief economist said the strength in eurozone economy continued, while inflation expectation remain consistent with ECB’s target ahead of its monetary policy decision next week.