Rupee Higher As Dollar Slips Despite Upbeat Inflation Data
Feb 15 2018

Rupee higher as Dollar slips despite upbeat inflation data

Financial Market Overview

15th February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open higher against the dollar at 63.95, tracking gains in most Asian peers after greenback fell overnight despite upbeat U.S. inflation data, which prompted expectations the Fed may hike rates at a faster pace going ahead. Pair USDINR now at 63.95 against 64.09 previous close.
  • Pair to tip in range between 63.85-64.05 today.

Indian Equities:-

  • Benchmark indices as well as broader markets gained around half a percent each, following positive lead from global peers.
  • The 30-share BSE Sensex was up 145.73 points at 34,301.68 and the 50-share NSE Nifty gained 46.80 points at 10,547.70.

Global Markets:-

  • Asian markets are higher today ,the Hang Seng is up 1.97% while the Shanghai Composite is up 0.45% and the Australian ASX200 is trading lower by 1.18%.
  • European markets finished broadly higher today with shares in Germany leading the region. The DAX is up 1.17% while France’s CAC 40 is up 1.10% and London’s FTSE 100 is up 0.64%.
  • Wall Street surged on Wednesday as investors shrugged off stronger-than-expected inflation data and snapped up shares of Facebook, Amazon.com and Apple. The Dow Jones Industrial Average rose 254.38 points, or 1.03 percent, to 24,893.83, the S&P 500 gained 35.72 points, or 1.34 percent, to 2,698.65 and the Nasdaq Composite  added 130.11 points, or 1.86 percent, to 7,143.62.
  • The U.S. core Consumer Price Index posted its largest gain in a year, strengthening bets for the Federal Reserve to hike rates more than expected this year.
  • Data released by the Labor Department showed core CPI, i.e. excluding food and energy, rose 0.3%, the largest increase since January 2017 and against a 0.2% surge in December. A poll of economists estimated U.S. consumer prices to likely increase by 0.2% in January.
  • However, the dollar index, which measures the greenback against a basket of six major rivals, ended 0.65% lower overnight, marking its lowest closing since Feb. 1 and the index’s largest single session decline since Jan. 24. Meanwhile, data from the Commerce Department showed retail sales dropped 0.3% last month, marking the largest fall since February 2017, after being unchanged in December.
  • The euro ended up 0.8% against the greenback yesterday, underpinned by better-than-expected December Eurozone industrial production figures, which came in 0.4% higher on-month, against expectations for a 0.2% rise. The annual rise was 5.2%, well above estimates of a 4.2% expansion.