Aug 14 2018

India Rupee calm on reducing Turkey worries

Financial Market Overview

14th August, 2018

Rupee:-

  • Indian rupee opened marginally higher at 69.85 per dollar today, after ending at an all-time closing low the day before. The rupee ended 110 paise lower at 69.93 on Monday against its Friday’s close of 68.83, which is a biggest single session decline against dollar since September 3, 2013. The fall in rupee was mainly impacted by drop in Turkish Lira, which helped the US dollar to gained strength on the back of fears that economic crisis in Turkey could spread to other global economies.
  • We expect the pair to trade in the range between 69.60-69.95 today.

Local Markets:-

  • It’s a positive start to the market on this Tuesday morning, with the Nifty trading around 11,400 in the opening tick, while the Sensex gained 100 points.
  • The Sensex was up 110.66 points at 37,755.56, and the Nifty gained 30.30 points at 11,386.10. About 654 shares have advanced, 352 shares declined, and 67 shares are unchanged.

Global Markets:-

  • Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off -0.45% while the Hang Seng is down -0.97%. The Nikkei 225 is off 1.17%.The Australian’s ASX200 is positive today it gain +48 points and up by 0.76%.
  • A majority of Asian currencies and equity indexes slipped further on Tuesday as Turkey’s currency turmoil continued to reverberate across financial markets worldwide. The lira fell more than 8% yesterday and edged further lower amid reported remarks by the country’s president that he would not increase interest rates and would not accept an international bailout.
  • European markets finished lower yesterday with shares in Germany leading the region. The DAX is down 0.53% while London’s FTSE 100 is off 0.32% and France’s CAC 40 is lower by 0.04%
  • U.S. stocks dropped on Yesterday as global jitters due to Turkey’s plummeting currency spread to Wall Street. All three major U.S. indexes closed lower, with the S&P 500 and the Dow falling for the fourth day in a row.
  • The Dow Jones Industrial Average fell 125.64 points, or 0.5 percent, to 25,187.5, the S&P 500 lost 11.34 points, or 0.40 percent, to 2,821.94 and the Nasdaq Composite dropped 19.40 points, or 0.25 percent, to 7,819.71.
  • The dollar showen some softness against most asian currencies, Dollar index down 0.1% at 96.82 after closing little changed in the previous session.10-year U.STreasury yield at 2.88%.
  • Chinese banks extended 1.45 trillion yuan ($210.69 billion) in net new yuan loans in July, above analysts’ expectations, as a growing trade battle with the United States threatens to pile more pressure on the slowing economy. New yuan loans of 1.2 trillion yuan, down sharply from June’s 1.84 trillion yuan.