Nov 09 2018

Rupee Steady As Oil Fall Offsets US Rate Hike Bets

Financial Market Overview

09th November, 2018

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee ended little changed against the dollar this week, as losses from rising bets of faster interest rate hikes in the U.S. were offset by a slump in crude oil prices.
  • The rupee ended at 72.49 to a dollar, against 72.9950 at close on Nov. 6.
  • The rupee posted its largest single-session gain in a week today, as Brent crude slipped below the $70per-barrel mark for first time in seven months.

 Indian Equities:-

  • Indian shares closed slightly lower on Friday, dragged by top IT and energy stocks, while gains in the financial and consumer counters arrested the downside.
  • The benchmark BSE index fell 0.22% to 35,158.55, while the broader NSE index declined 0.12% to 10,585.20. For the week, the NSE index gained 0.3% and the BSE index added 0.4%.

 Global Markets:-

  • European markets are lower today with shares in France off the most. The CAC 40 is down 1.06% while London’s FTSE 100 is off 0.86% and Germany’s DAX is lower by 0.76%.
  • The Federal Reserve maintained status quo on policy rates yesterday, but hinted interest rate is likely to rise in December. The central bank said that strong job gains and household spending were keeping the U.S. economy on track but business investment moderated from its rapid pace earlier in the year, creating a possible drag on future economic growth.
  • Following the Fed’s commitment to monetary tightening, the dollar index jumped by the most in three months yesterday, and the U.S. 10-year yield climbed to 3.23%.
  • The benchmark Brent crude oil contract was trading at $69.47 per barrel, down 4.2% this week.
  • Meanwhile, the on-shore Chinese yuan shed 0.8% this week to erase all of last week’s gain, after China’s services sector growth slowed and as optimism over a potential deal with the U.S. waned.