Rupee ended higher, Euro steady vs. dollar

Friday,   19-Oct-2018   05:37 PM (IST)

The Indian rupee ended the session higher at 73.32/33 levels compared to its opening at 73.60/61 levels, after touching a low of 73.65, as Brent crude remained below $80 per barrel for most part of the session. Exporters selling also supported the rupee in today’s low volume trade. Indian government bonds rose for a second consecutive week, with the 10-year yield falling the most in three months, as crude oil prices eased and retail inflation stayed below the central bank’s target, further easing fears of a rate hike in 2018. Benchmark indices closed sharply lower amid weak global cues. Reliance earnings, NBFC crisis and H1-B visa issue dented investor’s sentiment. The 30-share BSE Sensex was down 463.95 points or 1.33 percent at 34,315.63 and the 50-share NSE Nifty slipped 149.50 points or 1.43 percent to 10,303.50. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.52%, 4.37% and 4.31% respectively.

Euro steadied on Friday, after posting considerable losses in two straight sessions as the euro zone’s current account surplus widened from EUR 21.3 billion to 23.9 billion. Meanwhile, the Chinese economy grew 6.5% in the third quarter, slowing from the prior 6.7% and missing expectations for a 6.6% expansion. It was the slowest growth since the height of the financial crisis in the first quarter of 2009. The data came amid concerns that the continuing trade dispute with the U.S. will further dampen the performance of the world’s second largest economy. Third quarter growth was dragged down by the weakest factory output - the 5.8% rise in industrial production for September missed estimates of 6.0% - since February 2016 as automobile makers cut production by over 10% amid a sales slowdown. Looking ahead, being a thin day for economic data, investors will focus on the publication of existing home sales for September. As the data accounts for 90% of the sales in the housing market, traders will keep a close eye on what has been lackluster inventory data that, coupled with low new home construction, has been unable to keep up with demand. Outside of the data on the economic calendar, and with all the recent attention on the latest Federal Reserve minutes, investors will pay close attention to appearances from Dallas Fed president Robert Kaplan and Atlanta Fed President Raphael Bostic. After the prior session’s sharp sell-off sparked by weak industrial earnings and continued concerns over the outcome of investigations into missing Saudi journalist Jamal Khashoggi, U.S. futures pointed to a slight bounce for Wall Street on Friday ahead of corporate earnings, housing data and appearances from Federal Reserve policy makers. Elsewhere, European shares were lower as concerns over Italy’s budget continued to weigh on bank stocks and lack of progress in Brexit negotiations kept investors on edge.