The rupee ended at 69.80 to the dollar

The rupee ended at 69.80 to the dollar

14 Jun 2019 05:31 PM

Financial Market Overview

14th June, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The rupee ended at 69.80 to the dollar, its lowest since May. 30, against 69.51 at the previous close.
  • The currency opened at yesterday’s close and fell sharply to 69.85 in late trade on dollar demand from large corporates and foreign banks. The unit was down 0.5% for the week, its biggest weekly decline since week ended May 10.
  • Rupee’s movement for the week was dominated by offsetting forces that kept the pair’s movement limited in a range. However, the outlook suggests likely depreciation as we are witnessing the quantum of inflow shrinking in local shares, Despite hopes of an early Fed rate cut, revival in dollar index is another factor that can weigh on the rupee but behind the scenes it is the Fed rate cut bets that is aiding the local unit and should provide cushion at the crucial level of 70.50.

Indian Equities

  • Sharp fall in late trading pulled the indices to the low of the day on June 14 with Nifty ended below 11,850 level. At close, the Sensex was down 289.29 points at 39,452.07,
  • while Nifty was down 90.70 points at 11,823.30. About 808 shares have advanced, 1686 shares declined, and 144 shares are unchanged. IndusInd Bank, Zee Entertainment, Indiabulls Housing, Bharti Airtel and Axis Bank were the top losers on the Nifty, while gainers were Bharti Infratel, Sun Pharma, Power Grid, L&T and Vedanta. All the sectoral indices ended lower led by FMCG, bank, auto, pharma, infra, metal, IT and energy

Global Markets

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.84% while London's FTSE 100 is off 0.63% and France's CAC 40 is lower by 0.50%.
  • U.S. stocks rose on Thursday after two days of declines, as energy shares rebounded with oil on concerns of a supply disruption following attacks on two tankers in the Gulf of Oman. U.S. Secretary of State Mike Pompeo said the United States has assessed that Iran is responsible for the attacks, which occurred near Iran and the Strait of Hormuz, through which a fifth of global oil consumption passes. The Dow Jones Industrial Average rose 101.94 points, or 0.39%, to 26,106.77, the S&P 500 gained 11.8 points, or 0.41%, to 2,891.64 and the Nasdaq Composite added 44.41 points, or 0.57%, to 7,837.13.
  • The number of Americans filing applications for unemployment benefits unexpectedly rose last week, which could add to concerns that the labor market was losing steam after job growth slowed sharply in May. Other data on Thursday showed import prices fell by the most in five months in May amid a broad decline in the cost of goods, the latest indication of muted inflation pressures. The import deflation supports expectations that the Federal Reserve will cut interest rates this year. Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 222,000 for the week ended June 8. Economists forecast claims decreasing to 216,000 in the latest week.
  • Vanguard’s global chief economist Joe Davis says the firm has increased its forecast of a U.S. recession in the next 12-18 months from 30% to 40% and believes the Federal Reserve will act boldly and implement an “insurance cut” in its target range for the federal funds rate as early as next week's meeting.



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