Rupee Turns Lower On Importers’ Bids; Fed Meet In Focus

Rupee Turns Lower On Importers’ Bids; Fed Meet In Focus

19 Mar 2019 01:54 PM

Financial Market Overview

 19th March, 2019

 Noon update

 Indian Rupee:-

  • The Indian rupee turned lower against the dollar in afternoon trade, as state-run banks and few private lenders stepped up greenback buys on behalf of importers, erasing early gains from a weak dollar ahead of the Federal Reserve’s policy meeting that starts today.
  • The rupee changed hands at 68.75 to a dollar in Mumbai, against 68.5275 at the previous close. It opened little changed at 68.55 and hit an intraday high of 68.35, its highest since Aug. 2.

Indian Equities:-

  • Indian shares were largely unchanged on Tuesday, as investors creamed off profits after six sessions of gains. Stocks had run up last week on expectations that the current coalition government led by Prime Minister Narendra Modi would return to power after the general election starting next month.
  • The broader NSE index rose 0.04% to 11,466.65. The benchmark BSE index was 0.06% higher at 38,119.48.

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.7%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.18% and 0.08% respectively.
  • European markets are mixed today. The FTSE 100 is up 0.04% and Germany's DAX is up 0.15% while France's CAC 40 is down 0.08%.
  • The benchmark Brent crude oil prices was last trading 0.33% higher at $67.76 per barrel, adding to an overnight jump of 0.6%, supported by as supply cut by major oil exporters.
  • The dollar index was down 0.1% at 96.40, heading for a third day of losses. The losses on the dollar came ahead of the Fed’s two-day meeting, in which the U.S. central bank is widely expected to maintain its dovish tone.
  • Following the dovish twist at the January meeting, the Fed is expected to leave interest rates unchanged tomorrow, and signal that it is unlikely to increase borrowing cost in the coming months amid muted inflation and concerns over the economic outlook.
  • Analysts expect the Fed’s interest rate projections to indicate that they will raise rates once this year, compared to two in December.

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