Rupee Stays Up In Thin Volume Trade Tracking Oil Prices

Rupee Stays Up In Thin Volume Trade Tracking Oil Prices

18 Jun 2019 01:56 PM

Financial Market Overview

18th June, 2019 

Afternoon Update 

Indian Rupee

  • The Indian rupee was higher against the dollar in thinly-traded afternoon session, in line with most regional peers ahead of a U.S. Fed rate decision, while soft crude oil prices supported the local unit.
  • The rupee changed hands at 69.85 to the dollar, against 69.90 at the previous close. The currency opened at 69.83 and has traded in a narrow 9-paise band so far today.

Indian Equities

  • Indian shares edged higher on Tuesday ahead of the U.S. Federal Reserve's two-day interest rate meeting later in the day, while crude prices softened on concerns around global growth.
  • The broader NSE index was 0.41% higher at 11,720.20, while the benchmark BSE index was up 0.46% at 39,138.82.

Global Markets

  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.95% and the Shanghai Composite rose 0.09%. The Nikkei 225 lost 0.72%.
  • European markets are mixed. The FTSE 100 is higher by 0.03%, while the DAX is leading the CAC 40 lower. They are down 0.73% and 0.03% respectively.
  • The benchmark Brent crude oil contract traded below the $61 per barrel mark following a U.S. data release yesterday that pointed to a slowdown in growth due to U.S.-China trade tensions. The Brent contract was last trading 0.5% lower at 60.63, but losses were capped amid ongoing tensions in the Middle East after attacks on two oil tankers last week.
  • Reflecting expectations of a Fed easing, the 10-year U.S. yield was down at 2.07%, for the second session today, while the two-year yield was below the current Fed fund rate at 1.85%.
  • Traders will eye European Central Bank President Mario Draghi’s speech due later today for further cues. For the week, FOMC’s decision will be the key factor to watch for, followed by policy decisions from the Bank of Japan and the Bank of England.

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