Apr 19 2018

Rupee edges lower as crude oil surged to its highest level since late 2014

Financial Market Overview

19th April, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee is trading lower against the dollar as Brent crude’s surge to its highest level since late-2014 pressures the oil importing nation’s currency. Pair USDINR now at 65.81 against 65.64 previous close.
  • Pair to tip in range between 65.65-65.95.

Indian Equities:-

  • Equity benchmarks rebounded on Thursday after the correction in previous session, following positive lead from global stocks.
  • The 30-share BSE Sensex was up 111.58 points at 34,443.26 and the 50-share NSE Nifty rose 41.20 points to 10,567.40.

Global Markets:-

  • Asian markets are higher today. The Honk Kong Hang Seng is up 1.35% , the Shanghai Composite gains 0.79% and the Australian ASX200 is trading higher by 0.49%.
  • European markets finished broadly higher yesterday with shares in London leading the region. The FTSE 100 is up 1.26% while France’s CAC 40 is up 0.50% and Germany’s DAX is up 0.04%.
  • US. stocks were mixed after the close on Wednesday. At the close in NYSE, the Dow Jones Industrial Average lost 0.16%, while the S&P 500 index climbed 0.08%, and the NASDAQ Composite index climbed 0.19%.
  • Crude oil will be the center of attention after Brent futures were back to their highest since November 2014. The latest increase comes following a decline in U.S. crude inventories and amid expectations Saudi Arabia will continue to suppress supply. An increase in crude oil prices affects rupee directly by increasing India’s import bill. It also stokes inflation in the country while hurting economic growth. According to estimates in the Economic Survey earlier this year, a $10 per barrel increase in the price of oil reduces growth by 0.2%-0.3% and increases wholesale inflation by about 1.7 percentage points.
  • The dollar index edged higher yesterday after the Federal Reserve’s Beige Book showed the U.S. economy continued to expand at a modest to moderate pace in March and early April.