Sep 21 2018

Rupee turns lower following fall in local equities

Financial Market Overview

21st September, 2018

Rupee:-

  • The Indian rupee briefly turned lower against the dollar in afternoon trade, as local shares fell sharply, erasing early gains in volatile trade.
  • The rupee changed hands at 72.30 to a dollar, against 72.37 at close on Sep. 19. It opened higher at 71.85 and rose to the day’s high of 71.76 before slipping to the day’s low of 72.48. On a weekly basis, the currency was headed for a fourth consecutive fall.

Indian Equities:-

  • India’s benchmark BSE Sensex reversed initial gains and was trading lower after falling as much as 3%, dragged by losses in financial sector stocks.
  • The broader NSE index is lower 0.73 percent at 11,152.75 while the benchmark BSE index is 61 percent down to 36895.64.

Global Markets:-

  • Most Asian shares extended rally for a second day, tracking record gains in all the three major U.S. indexes.The Hang Seng gained by 1.73% and the Shanghai Composite went higher by 2.50%.
  • European markets are trading mixed today. The Germany’s DAX is trading higher at 0.90% followed by the France CAC40 at 0.78% and Spain’s IBEX35 a 0.76% and the London’s FTSE100 is trading lower at 2.52%
  • The Brent crude oil prices slipped nearly 1% in overnight trade following comments from Trump who criticized the OPEC. Trump remarked that despite U.S. protecting the Middle East countries, they continued to push oil prices higher and said OPEC monopoly must get prices down now. It was last trading up 0.84% at $79.36 per barrel.
  • India may begin payment to Iran in rupees for crude oil, according to several media reports, while the ET Now television channel reported on Sep. 19 that the RBI is looking at the possibility of allowing oil companies to buy dollars directly from the central bank. India imports 80% of its oil needs and rise in crude prices risks widening nation’s trade deficit.
  • The regional currencies have taken the latest tit-for-tat tariffs by Washington and Beijing in their stride. However, U.S. President Donald Trump continued to target China after the recent tariff move, stating that it was time to take a stand on them.