The rupee ended at 71.66 to a dollar

The rupee ended at 71.66 to a dollar

23 Aug 2019 05:32 PM

Financial Market Overview

23rd Aug, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee fell for a seventh week against the dollar to post its biggest losing streak in nearly four years, as the yuan plunged to multi-year lows. The rupee ended at 71.66 to a dollar, against 71.81 at previous close. The local unit opened at 71.92 and briefly dropped to a year-to-date low of 72.05 tracking weakness in the Chinese currency, before rising to the day’s high of 71.58 on a rebound in local shares.
  • The currency fell 0.7% this week and is down by 4.7% over the last seven weeks. This week’s move was largely due to global factors, most importantly due to talks over possible recession, That kept investors risk averse. We have two key events ahead of us including any government announcement on the FPIs (foreign portfolio investors) tax front and (U.S. Federal Reserve chief) Powell’s speech that will determine the rupee’s move next week.

Indian Equities

  • After a weak start Indian indices ended on positive note on August 23 on hopes of stimulus package from government. Finance Minister Nirmala Sitharaman will hold a press briefing on Friday evening, a government spokesman said, amid expectations that the government would announce steps to revive economic growth.
  • After breaking 10,700 in the morning the Nifty rebounded from the lows and closed above 10,800 level. At close, the Sensex was up 228.23 points at 36,701.16, while Nifty was up 88.00 points at 10,829.40. About 1310 shares have advanced, 1125 shares declined, and 130 shares are unchanged.

Global Markets

  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.55% while France's CAC 40 is up 0.32% and Germany's DAX is up 0.17%.
  • The benchmark S&P 500 ended little changed on Thursday as a fall in U.S. jobless claims offset data showing a contraction in U.S. manufacturing activity while investors awaited Federal Reserve Chair Jerome Powell's speech on Friday for clues on the central bank's monetary policy. Data from the U.S. Labor Department showed initial claims for state unemployment benefits dropped more than expected last week, suggesting the labor market was holding firm despite a manufacturing slowdown and concerns the economy is on a path toward recession. The Dow Jones Industrial Average rose 49.51 points, or 0.19%, to 26,252.24, the S&P 500 lost 1.48 points, or 0.05%, to 2,922.95 and the Nasdaq Composite dropped 28.82 points, or 0.36%, to 7,991.39.
  • U.S. companies' borrowing to spend on capital investments rose 15% in July from a year earlier, the Equipment Leasing and Finance Association said on Thursday. Companies signed up for $9.4 billion in new loans, leases and lines of credit last month,up from $8.2 billion a year earlier. Borrowings fell 5% from the previous month.
  • Deep in Europe’s manufacturing core, a German company is taking radical steps to cope with a perfect storm that has sent traditional economic pillars into a tailspin and put the country on the verge of recession.
  • Germany is not in recession, a spokeswoman for the Economy Ministry said on Friday, after Europe's largest economy contracted by 0.1% in the second quarter.