Jan 25 2018

Rupee edges higher as US. treasury secretary comment hurts Dollar

Financial Market Overview

25th January, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee edges higher as dollar sinks following comments by US Treasury secretary Steven Mnuchin that he welcomes weaker currency. Pair USDINR now at 63.47, lowest since Jan. 15, against 63.69 previous close.
  • Indian financial markets will remain shut tomorrow for Republic Day.
  • India’s federal government yesterday approved a plan to infuse more than one trillion rupees ($15.70 billion) in 20 state-run lenders as part of bank recapitalisation fund for this fiscal year that ends Mar. 31.
  • Pair to tip in range between 63.40-63.65 today.

Indian Equities:-

  • Equity benchmarks continued to consolidate in opening on Thursday, ahead of expiry of January futures and options contracts.
  • The 30-share BSE Sensex was down 12.03 points at 36,149.61 and the 50-share NSE Nifty fell 4.30 points to 11,081.70.

Global Markets:-

  • Asian markets are lower today. Shares in Hong Kong are leading the region ,the Hang Seng fell by 0.33%, the Australian ASX 200 is down 0.21% and the Shanghai Composite in China is lower by 0.14%.
  • European markets finished broadly lower today with shares in London leading the region. The FTSE 100 is down 1.14% while Germany’s DAX is off 1.07% and France’s CAC 40 is lower by 0.72%.
  • The S&P 500 was flat on Wednesday while the Nasdaq lost ground in choppy trading in the wake of comments by U.S. Commerce Secretary Wilbur Ross which hinted at action against China in a trade war. The Dow Jones Industrial Average rose 41.38 points, or 0.16 percent, to 26,252.19, the S&P 500 lost 1.55 points, or 0.05 percent, to 2,837.58 and the Nasdaq Composite  dropped 45.23 points, or 0.61 percent, to 7,415.06.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell by a massive 1% overnight, at its lowest levels since 2014 on U.S. Treasury Secretary Steven Mnuchin’s comments endorsing a weaker greenback. It was last down 0.03%.
  • At the World Economic Forum in Davos yesterday, Mnuchin said a weaker dollar is good for the U.S. in terms of “trade and opportunities”, according to reports. The comments come quick on heels of U.S. President Donald Trump’s decision earlier this week to levy steep import tariffs on washing machines and solar panels, which sparked concerns of trade protectionism.
  • The euro ended 0.9% higher against the greenback yesterday and was last trading up 0.06%, as investors shifted focus to the European Central Bank policy meet outcome today, and looked out for any comments suggesting the rapidly appreciating euro was a concern for the central bank.