Indian Rupee At Record Low For 2nd Day On Oil Surge, Weak Shares
11 September 2018 / Evening Brief
Indian Rupee
- The rupee settled at 72.69 against 72.45 at the previous close. The local unit moved in 72.25-72.74 per dollar band intra-day.
- The Indian rupee swung between gains and losses to end at a record low for a second day against the dollar, hurt by a sharp uptick in crude oil prices and weak local shares amid escalating trade war fears. However, likely intervention from the central bank and government officials yesterday indicating possible steps to stem the rupee’s fall helped slow the pace of decline in the currency.
Global Currency
- The dollar rose against the safe-haven yen, with USD/JPY increasing 0.22% to 111.36. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion. The U.S. dollar index, which measures the Dollar strength against a basket of six major currencies, fell 0.03% to 95.09.
- The euro's bounce fizzled on Tuesday as a broad dip in investor appetite for risk dragged the single currency lower, offsetting recent positive sentiment towards Italian government debt before a central bank meeting later this week.
- Sterling was the big mover, rallying to a five-week high above $1.30 after the European Union chief negotiator signalled somewhat improved prospects of a Brexit deal.
Global Markets
- Oil prices rose on Tuesday as U.S. sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output. Brent crude oil LCOc1 was up 40 cents at $77.77 a barrel by 0950 GMT. U.S. light crude CLc1 was up 5 cents at $67.59.
- Gold prices held steady during Asian trade on Tuesday as investors remained on the sidelines amid expectations of a U.S. interest rate hike this month and on fears of an escalation in the Sino-U.S. trade war.
Global Markets at one Glance
| Markets at 5.00pm | In INR | % Change | |
| USD/INR | 72.6982 | 70.11 | 0.34 |
| EUR/USD | 1.15864 | 84.23 | 0.24 |
| GBP/USD | 1.3021 | 94.61 | 0.26 |
| USD/JPY | 111.301 | 0.65 | 0.12 |
| SEK/INR | 9.0660 | 8.0188 | 0.0276 |
| DKK/INR | 6.4395 | 11.29 | 0.0243 |
| AUD/USD | 1.4078 | 51.62 | 0.33 |
| DXY | 95.22 | 0.08 | |
| Index | Today | % Change |
| NIFTY | 11438.1 | -1.3 |
| SENSEX | 37922.17 | -1.22 |
| NIKKEI | 22373.09 | 0.3 |
| HANG SENG | 26613.42 | -1.33 |
| SHANGHAI | 2669.4859 | -1.21 |
| CAC# | 5280.48 | 0.54 |
| FTSE # | 7264.61 | 0.0042 |
| DAX # | 12014.02 | 0.45 |
| Commodities | Today | % Change |
| GOLD # | 1192.58 | -0.23 |
| SILVER# | 14.145 | 0.55 |
| BRENT # | 77.32 | 0.64 | NYMEX # | 68.09 | 0.5 |
| Today | Today |
| OPEN | 72.3000 |
| HIGH | 72.7400 |
| LOW | 72.2500 |
| CLOSE | 72.6900 |
Key Events of the Day
| Date | Time | Currency | Event | Actual | Forecast | Previous |
| 11-09-2018 | 14.00 | GBP | Average Earnings Index +Bonus (Jul) | 2.6% | 2.4% | 2.4% |
| 11-09-2018 | 14.00 | GBP | Claimant Count Change (Aug) | 8.7K | 10.0K | 6.2K |
| 11-09-2018 | 14.00 | EUR | German ZEW Economic Sentiment (Sep) | -10.6 | -14.0 | -13.7 |
