Oct 10 2017

Rupee edges higher in early trades on broad Dollar weakness

Financial Market Overview

10th October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge higher against the dollar in early trade, in line with Asian peers, tracking the dollar’s slide from multi-month highs reached last week and a strong euro; pair USDINR now at 65.22 against 65.35 previous close.
  • Pair to tip in range between today 65.15-635.

Indian Equities:-

  • Equity benchmarks started off trade on a positive note Tuesday despite mixed global cues, backed by healthcare, metals and select banks stocks.
  • The 30-share BSE Sensex was up 82.94 points at 31,929.83 and the 50-share NSE Nifty gained 23.75 points at 10,012.50. About 777 shares advanced against 214 declining shares on the BSE.

Global Markets:-

  • Asian markets are mixed today as Chinese and Australian shares show losses. The Shanghai Composite is down 0.35% while the ASX200 falls 0.09%. The Nikkei 225 is trading higher by 0.38% and Hang Seng is showing 0.01% gains.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.16% and the CAC 40 rose 0.11%. The FTSE 100 lost 0.20%.
  • S. markets were partially shut yesterday for Columbus Day celebrations. Markets will now watch for the Federal Reserve’s September meeting minutes, due tomorrow, and comments from central bank officials, due this week.
  • China’s onshore and offshore yuan jumped in early trade on Tuesday to their strongest level in more than two weeks, breaching a key psychological threshold and gaining more than half a percent against the U.S. dollar. Prior to market opening on Tuesday, the People’s Bank of China lifted its official yuan midpoint to 6.6273 per dollar, its first firmer fixing since Sept. 22, reflecting spot yuan performance a day earlier. The official guidance was 220 pips or 0.33 percent firmer than the previous fix of 6.6493 on Monday. The move in the midpoint was the biggest strengthening in percentage terms since Sept. 8.
  • The euro gained 0.05% against the dollar yesterday and was last trading up 0.3%, helped by data that showed German industrial output, which measures the combined production of manufacturing, construction and energy rose by 2.6% in August after a 0.1% drop in July, marking its strongest monthly uptick since mid-2011.
  • European Central Bank Executive Board member Sabine Lautenschlaeger’s comments that the central bank should roll back asset purchases in 2018 also aided sentiment for the euro.