Jul 20 2018

Rupee at fresh record low on continues Yuan weakness

Financial Market Overview

20th July, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee tumbles to a fresh record low, prompted by further decline in Chinese yuan. Pair USDINR climbs past previous record high of 69.10 reached on June 28 to 69.13, now at 69.06 against 69.05 previous close.
  • We expect the pair to tip in range between 68.80-69.20 today.

Indian Equities:-

  • Equity market opened flat on Friday morning, with the Nifty holding 10,950. The Street could be taking cues from tepid global cues.
  • The Sensex is up 5.58 points or 0.02% at 36356.81, while the Nifty is down 1.90 points or 0.02% at 10955.20. The market breadth is negative as 243 shares advanced, against a decline of 355 shares, while 61 shares are unchanged.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hang Seng down 0.54%, the Shanghai Composite is down 0.08% while the Australian ASX200 is trading higher by 0.39%.
  • European markets finished mixed as of the most recent closing prices on Thursday. The FTSE 100 gained 0.10%, while the DAX led the CAC 40 lower. They fell 0.62% and 0.56% respectively.
  • US. stocks dropped on Thursday after earnings disappointed and trade jitters escalated over worries that the European Union could slap retaliatory tariffs on goods imported from the United States. The Dow Jones Industrial Average fell 134.52 points, or 0.53 percent, to 25,064.77, the S&P 500 lost 11.1 points, or 0.39 percent, to 2,804.52 and the Nasdaq Composite dropped 29.15 points, or 0.37 percent, to 7,825.30.
  • The onshore yuan dropped 0.4% to near the 6.80 level Friday, headed for the fourth day of losses and poised for its sixth consecutive weekly decline. The recent slide on the Chinese currency amid worries over the U.S. protectionist agenda drew the attention of President Donald Trump, who said in an interview with CNBC yesterday that it was a matter of concern.
  • The dollar index ended well off its highest level of the day on Thursday, and U.S. equities and bonds declined after Trump criticized the Fed for increasing interest rates. Trump said in the CNBC interview that he was not thrilled the Fed was raising interest rates, which according to him could potentially slowdown the economy.