Apr 23 2018

Rupee extends its losses as Dollar gains on US yields multiyear high

Financial Market Overview

23rd April, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee extends its losses against the dollar as Treasury yields rose, boosting the U.S. currency to two-week highs. Pair USDINR now at 66.20 against 66.12 previous close.
  • Pair to tip in range between 66.00-66.30.

Indian Equities:-

  • Indian equity benchmarks edged lower dragged by heavyweights like ICICI Bank, Infosys, Bharti Airtel and Hero MotoCorp. However, the losses were capped as HDFC, Larsen & Toubro and Kotak Mahindra Bank were among the gainers.
  • The S&P BSE Sensex fell 0.15 percent to 34,396 and the NSE Nifty 50 index was little changed at 10,568.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hang Seng is down 0.25% , the Shanghai Composite lost 0.11% while the Australian ASX200 is trading higher by 0.33%.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.54% and the CAC 40 rose 0.39%. The DAX lost 0.21%.
  • US. stocks were lower at the close on Friday, as losses in the Consumer Goods, Technology and Consumer Services sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average declined 0.82%, while the S&P 500 index fell 0.85%, and the NASDAQ Composite index declined 1.27%.
  • The dollar index edged higher on Monday, building on its advance last week, on the back of 10-year U.S. borrowing cost leaping to its highest level in more than four years. The index posted its best weekly performance in two months in the prior week as rising inflation expectations led investors to demand more returns on the U.S. bonds. The recent jump in Brent crude prices as well as other commodities amid supply concerns prompted investors to reassess the outlook for inflation. The two-year U.S. borrowing cost reached fresh decade highs.
  • Over the weekend, U.S. Treasury Secretary Steven Mnuchin said he may travel to China and he was optimistic that the two nations could bridge their differences over trade policies. China’s commerce ministry responded by saying it would welcome U.S. officials to discuss trade and economic issues.
  • North Korea said on Saturday it would immediately suspend nuclear tests, scrap its nuclear test site, and pursue economic growth and peace instead.