Sep 17 2018

Rupee stays lower As Govt recent measures failed to improve sentiments

Financial Market Overview

17th September, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee was poised for its first loss in three sessions against the dollar, as the federal government’s recent measures to boost inflows and stem the currency’s depreciation failed to improve sentiment.
  • However, persistent greenback sales from state-run and private banks, likely for the central bank, helped offset further losses tracking oil-related dollar bids.
  • The rupee was trading at 72.47 to a dollar against 71.85 at close on Sep. 14. It fell to the day’s low of 72.6850 so far today, but managed to recoup some losses on suspected intervention from the central bank at several levels.

 

Indian Equities:-

  • Indian shares fell over 1 percent on Monday, after measures outlined by the government on Friday to stem the steep decline in the rupee failed to cheer markets, while declining Asian shares added to the gloom.
  • The broader NSE index dropped 0.94 percent to 11,406.65 while the benchmark BSE index slipped 1.05 percent to 37,690.56.

 

Global Markets:-

  • Asian markets finished lower as of the most recent closing prices. The Nikkei 225 dropped 0.94%, the Hang Seng down by 1.24% and the Shanghai Composite lower by 1.11%.
  • European markets are trading lower today. The Germany’s DAX is trading lower by 0.55% followed by the France CAC40 at 0.15% and the London’s FTSE100 at 0.12% and The Spian’s IBEX35 is trading up by 0.19%.
  • Turkey’s lira weakened against the dollar on Monday as investors weighed up the impact of last week’s massive rate hike and turned their attention to this week’s announcement of the government’s medium-term economic plan.
  • The dollar index was last trading little changed, even as the 10-year U.S. Treasury yields hovered near 3%, on 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 third time this year.
  • The benchmark Brent crude oil prices was trading up 0.2% at $78.26 per barrel.
  • According to an article in the Wall Street Journal, U.S. tariffs against Chinese imports is expected to be set at 10%, lower than the 25% previously mulled by the Trump administration.