Rupee Up On Foreign Banks’ Dollar Sales; Weak Shares Cap Rise

Rupee Up On Foreign Banks’ Dollar Sales; Weak Shares Cap Rise

19 Sep 2019 01:48 PM

Financial Market Overview

 19th September, 2019

Afternoon Update

Indian Rupee

  • The Indian rupee edged higher against the dollar in choppy afternoon trade, on greenback sales by foreign banks, likely for corporate clients. However, weakness in local shares kept gains under check.
  • The rupee was trading at 71.13 to a dollar, against its previous close of 71.23. The unit opened at 71.35 and rose to the day's high of 71.11, its highest since Sep. 13, and was the top performing Asian currency for the day.

Indian Equities

  • Indian shares slipped to multi-week lows on Thursday as the absence of positive catalysts kept sentiment largely in check, while investors laid off heavy bets after the U.S. Federal Reserve delivered mixed signals about its next move.
  • The broader NSE index dropped as much as 1.13% to 10,718.20, while the benchmark BSE index fell 1.10% to 36,163.20.

Global Markets

  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.46% and the Nikkei 225 rose 0.38%. The Hang Seng lost 1.04%.
  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.49% while Germany's DAX is up 0.27% and London's FTSE 100 is up 0.17%.
  • Brent crude declined Tuesday and Wednesday, wiping off half of its 15% surge at the beginning of the week. The contract was last trading little changed at $63.58 per barrel.
  • Asian currencies were lower against the dollar after the U.S. Federal Reserve cut policy rates by 25 basis points yesterday, to a target range of 1.75% to 2%, but signaled it would set a higher bar for further reductions.
  • The dollar index rose 0.3% after the Fed decision and settled at 98.56. The index was last trading little changed at 98.48. The Treasury yield curve flattened following the Fed move and yields on the front-end of the curve rose.