Rupee extend its gains as Fed's rate outlook hurts Dollar demand

Rupee extend its gains as Fed's rate outlook hurts Dollar demand

22 Mar 2018 03:14 PM
Myforexeye Research Report

Financial Market Overview

22nd March, 2018

Noon Update:-                                                                                  



  • Indian rupee extended gains against the dollar in afternoon trade, as exporters sold the greenback after the Federal Reserve retained its outlook of three rate hikes this year, which hurt dollar demand.
  • The rupee changed was last seen at 65.04 to a dollar, against 65.21 at the previous close. It has so far moved in a 65.02-65.14 range, after opening at 65.12. The rupee was headed for its first gain in six days against the dollar, rising 0.27%, the biggest single-session rise since Feb. 23.

Indian Equities:-

  • Benchmark indices trimmed losses amid volatile trade in last hour, with the Sensex falling 30.73 points to 33,105.45.
  • The Nifty declined 8.80 points to 10,146.45. About three shares declined for every share rising on the BSE.

Global Markets:-

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.42% while France's CAC 40 is off 0.28% and London's FTSE 100 is lower by 0.25%.
  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.99%, while the Hang Seng led the Shanghai Composite lower. They fell 1.09% and 0.53% respectively.
  • The dollar index, which measures the greenback against a basket of six major currencies, extended overnight losses and was last trading down 0.37% at 89.47, its lowest since Mar. 8. It wasn’t far from its one-month low of 89.40, after the Fed’s dot plot - an estimate of where federal funds rates are likely headed - for 2018 was unchanged from that in December.
  • The U.S. central bank expectedly raised rates by quarter percentage point yesterday, while retaining its forecast of two more rate hikes in 2018, as the economy continues to strengthen and it pursues a return to normal interest rate levels. The authority, however, is expected to raise interest rates three times next year, an increase from the two for 2019 forecast in December.

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