Aug 31 2018

Rupee fall to record lows due to pressure on Argentinean peso and Turkish lira

Financial Market Overview

31st August, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee fall to record lows against the dollar in the wake of renewed pressure on emerging market currencies such as the Argentinean peso and the Turkish lira.
  • The rupee is opened at 70.95 against the dollar compared with the previous close of 70.74. That will set the currency on course for its worst monthly performance in two years. The rupee is currently caught in the cross currents of concerns over India’s balance of payments, an environment which favors the dollar against EM currencies
  • We expect the pair to trade in the range between 70.75 to 71.10

 

Indian Equities:-

  • The market has opened flat on the first day of the September futures & options contracts.
  • The Sensex is down 32.76 points at 38657.34, while the Nifty is down 10 points at 11666.80.  About 551 shares have advanced, 397 shares declined, and 50 shares are unchanged.

 

Global Markets:-

  • Asian markets are lower today Chinese , Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.17% while the Hang Seng is down 0.98%. The Shanghai Composite is off by 0.55%. The Australian’s ASX200 is little negative today by -17 points and 0.29% .
  • European markets finished lower today with shares in London leading the region. The FTSE 100 is down 0.62% while Germany’s DAX is off 0.54% and France’s CAC 40 is lower by 0.42%.
  • U.S. stocks ended their four-day winning streak on Thursday as trade anxieties resurfaced and investors sold risk ahead of the long Labor Day holiday weekend.
  • The Dow Jones Industrial Average fell 137.51 points, or 0.53 percent, to 25,987.06, the S&P 500 lost 12.91 points, or 0.44 percent, to 2,901.13 and the Nasdaq Composite dropped 21.32 points, or 0.26 percent, to 8,088.36.
  • U.S. consumer spending increased solidly in July, suggesting strong economic growth early in the third quarter, while a measure of underlying inflation hit the Federal Reserve’s 2 percent target for the third time this year. Concerns the Trump administration’s protectionist trade policy, which has led to an escalating trade war with China and tit-for-tat import tariffs with other trading partners, including the European Union, Canada and Mexico, could hurt the economy.
  • The number of Americans filing for unemployment benefits rose last week, but the underlying trend continued to point to a robust labor market that should keep the economy on a strong growth path this year.
  • Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 213,000 for the week ended Aug. 25, the Labor Department said on Thursday. Data for the prior week was unrevised.
  • Claims had declined for three straight weeks. Economists polled by Reuters had forecast claims rising to 214,000 in the latest week.