Rupee higher as U.S tax uncertainty and new Fed chief selection weighs on Dollar

02 Nov 2017 04:14 AM
Financial Market Overview 02nd November, 2017 Morning Coffee:-                                                                                   MARKETS AT OPEN:- Rupee:-
  • Indian rupee edges higher against the dollar in early trade, tracking Asian peers after the greenback pared all overnight gains post the Federal Reserve’s policy decision amid concerns over tax reforms and the new head's selection at the U.S. central bank; pair USDINR now at 64.49 against 64.59 previous close.
  • Pair to tip in range between today 64.45-64.70.
Indian Equities:-
  • Equity benchmarks opened flat on Thursday after the Federal Reserve kept interest rate unchanged in policy meeting.
  • The 30-share BSE Sensex was down 8.11 points at 33,592.16 and the 50-share NSE Nifty fell 6.10 points to 10,434.40.
  • Aurobindo Pharma, Lupin, Sun Pharma, HCL Technologies, Bajaj Auto, Cipla, HPCL, BPCL and Yes Bank were early gainers. Axis Bank, SBI, NTPC, ONGC, HUL and Hindalco were early losers.
Global Markets:-
  • Asian markets are lower today. The Nikkei 225 is off 0.17% while the Hang Seng is down 0.09%. The Shanghai Composite fell 0.52% and Australian ASX200 is lower by 0.07%.
  • S. stocks were mixed at the close on Wednesday, as gains in the Oil & Gas, Basic Materials and Financials sectors led shares higher while losses in the Utilities, Telecoms and Industrials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 index climbed 0.16%, and the NASDAQ Composite index declined 0.17%.
  • European markets finished mixed as of the most recent closing prices on Wednesday. The DAX gained 1.78% and the CAC 40 rose 0.20%. The FTSE 100 lost 0.07%.
  • At the end of its two-day policy meet yesterday, the Fed left interest rates unchanged but stressed on ‘solid’ economic growth, boosting hopes of another rate hike next month.
  • The dollar index, which measures the greenback against a basket of six major rivals, was last trading off 0.3%, pulling back from 0.28% gain scored overnight as focus shifted to the future of U.S. tax reforms and appointment of the new Federal Reserve head.
  • Sentiment also remained weak amid reports President Donald Trump is expected to make an announcement regarding appointment of a new central bank head, and is leaning towards nominating Fed Governor Jerome Powell. Powell is viewed as being more dovish on monetary policy compared to other candidates in running for the position, such as Stanford University economist John Taylor.
  • The ADP National Employment data showed private employers added 235,000 jobs last month, well over estimates for a 200,000 addition.