Jul 03 2018

Rupee turned higher on likely Central bank’s intervention

Financial Market Overview

03rd July, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee recouped early losses to turn higher against the dollar in afternoon trade, helped by greenback sales by state-run and private lenders, likely on behalf of the central bank.
  • The rupee was last seen at 68.63 to a dollar, from 68.80 at previous close. It fell to the day’s low of 68.96, getting closer to the record low of below 69-levels seen last week, as persistent weakness in the yuan continued to drag other Asian units. However, dollar sales by two major state-run banks and a private lender near the day’s low and around 68.89 levels helped trim losses in the rupee.

Indian Equities:-

  • The market is off its day’s high in afternoon as investors closely monitor trade developments between the US and China, and also await June quarter earnings season that will be kicked off next week.
  • The 30-share BSE Sensex gained 68.36 points at 35,332.77 and the 50-share NSE Nifty rose 25.40 points to 10,682.70.

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.41%, while the Hang Seng led the Nikkei 225 lower. They fell 1.41% and 0.12% respectively.
  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.74% while France’s CAC 40 is up 0.58% and London’s FTSE 100 is up 0.36%.
  • The Chinese yuan trimmed some losses and was trading 0.2% lower at 6.67 against the dollar, after Yi Gang, governor of the nation’s central bank, said China will continue to implement prudent and neutral monetary policy to keep the yuan basically stable at a reasonable level, adding that the recent fluctuations were due to strong dollar and external uncertainties.
  • The Brent crude slipped more than 2% yesterday, after Trump said on Twitter that he had talked to Saudi Arabia about raising production. The benchmark Brent crude oil contract was last trading up 0.8% at $77.90 a barrel after dropping 2.7% to end at $77.30 at close in the previous session.
  • Activity in the UK construction sector accelerated last month, hitting a seventh month high, according to a closely watched business survey released on Tuesday. Research firm IHS Markit said its construction purchasing managers’ index rose to 53.1 in June. Analysts had expected the reading to hold steady at 52.5.