Mar 12 2019

Rupee Stays Higher As Risk Sentiment Improves

Financial Market Overview

12th March, 2019

Noon update

Indian Rupee:-

  • The Indian rupee stayed higher against the dollar in afternoon trade, helped by foreign banks’ greenback sales likely for custodian clients, as risk sentiment improved amid changes to the Brexit deal. However, suspected dollar bids by state-run lenders, likely on behalf of the central bank, capped further gains in the rupee.
  • The rupee changed hands at the day’s high of 69.54 to a dollar, also its highest since Jan. 7, against 69.88 at previous close. The currency opened at 69.75. Earlier in the day, it rose to 69.56 before trimming some gains on dollar purchases by few state-run banks, likely on the instructions of the Reserve Bank of India.

Indian Equities:-

  • Indian shares jumped on Tuesday to a near six-month high, buoyed by strong foreign fund inflows as chances brightened of Prime Minister Narendra Modi’s ruling party returning to power for a second term.
  • The broader NSE index was trading up 1.06% at 11,286.00. The benchmark BSE index was 1.10% higher at 37,461.32.

Global Markets:-

  • Asian markets closed sharply higher today with shares in Japan leading the region. The Nikkei 225 is up 1.79% while Hong Kong’s Hang Seng is up 1.50% and China’s Shanghai Composite is up 1.10%.
  • European markets are mixed today. The DAX is up 0.44% while the CAC 40 gains 0.42%. The FTSE 100 is off 0.34%.
  • Benchmark Brent crude oil price was up 0.44% at $66.87 per barrel, adding to yesterday’s 1.4% advance amid upbeat risk sentiment.
  • Global risk-on mood was prompted by Prime Minister Theresa May securing legally-binding Brexit assurances from the European Union yesterday, in attempt to sway British lawmakers to vote in favor of a deal she has negotiated, Reuters reported. The pound climbed 0.6% to 1.3225 in Asia trading today.
  • The dollar index traded 0.2% lower at 97.00 and was headed for third straight session of decline in wake of the pound’s rally. Data yesterday showed U.S. retail sales unexpectedly rose in January, while numbers for December were revised lower.