Nov 09 2018

Rupee higher after U.S. oil slips

Financial Market Overview

09th November, 2018

Morning Coffee                                                                      

Indian Rupee:-

  • The Indian rupee opened higher against the dollar after crude oil prices extended losses, helping offset a decline in regional currencies following the U.S. Federal Reserve’s policy decision.
  • The rupee, resuming trade after two-days of market holidays opened at 72.70 versus its previous close of 72.9950.
  • We expect USD/INR to trade in a range between 72.55 – 72.95 today.

Indian Equities:-

  • The broader NSE index opened 0.15% higher at 10,614.70, while the benchmark BSE index opened 0.06% higher at 35,258.13.
  • Indian traders will react for the first time to the U.S. Democratic Party flipped the House of Representatives, in line with what most political analysts had predicted.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.15% while the Hang Seng is down 0.31%. The Shanghai Composite is 1.05% down.
  • North and South American markets finished broadly mixed today. The DOW is up 0.76%, S&P is 0.50% higher while NASDAQ is 0.40% down.
  • Brent crude dropped about 2% on Thursday to close at its lowest level in seven months and the U.S. benchmark declined more than 1.5% to near $60.50 to end at its lowest since mid March.
  • The Chinese yuan and the South Korean won paced losses in Asian currencies on Friday after the Fed indicated that it remained on course to hike interest rates next month amid robust economic growth and a healthy job market. The U.S. central bank expectedly left interest rates unchanged yesterday and its accompanying statement was more or less similar to that from its previous meeting.
  • The dollar index jumped by the most in three months on Thursday and U.S. 10-year yield climbed to 3.23% following the Fed’s commitment to monetary tightening.
  • The U.S. Congress is now split, with the Republicans controlling the Senate and the Democrats in charge of the House of Representatives.