Daily morning Forex report
Apr 20 2018

Rupee lower as jump in US. bond yields lifted Dollar

Financial Market Overview

20th April, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee is trading lower against the dollar today as a jump in long-term Treasury yields to two-month highs lifted the U.S. currency. Pair USDINR now at 66.04 against 65.79 previous close.
  • After markets closed yesterday, the RBI released the minutes of the April meeting of the Monetary Policy Committee. Four out of the six members of the rate-setting panel called for a “wait and watch” approach to policymaking, while warning of inflation risks. RBI Deputy Governor in charge of monetary policy Viral Acharya joined RBI Executive Director Michael Patra in calling for withdrawal of accommodation from June.
  • Pair to tip in range between 65.85-66.20.

Indian Equities:-

  • Benchmark indices opened flat amid global weakness and higher crude oil prices.
  • The 30-share BSE Sensex was down 21.76 points at 34,405.53 and the 50-share NSE Nifty fell 11.90 points to 10,553.40.

Global Markets:-

  • Asian markets are lower today. The Shanghai Composite is down 1.20% , the Honk Kong’s Hang Seng lost 0.39% and the Australian ASX200 is trading lower by 0.21%.
  • European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.21% and the FTSE 100 rose 0.16%. The DAX lost 0.19%.
  • US. stocks were lower after the close on Thursday, as losses in the Consumer Goods, Technology and Basic Materials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.34%, while the S&P 500 index declined 0.57%, and the NASDAQ Composite index lost 0.78%.
  • The dollar index rose by the most in three weeks yesterday after 10-year Treasury yield topped 2.90% as commodity prices rising to multiyear highs raised inflation expectations. The U.S. bond market’s expectations of inflation over the long-term, as measured by the 10-year breakeven rate, rose to 2.19%. The U.S. yield curve steepened as the difference between the 10-year and two-year yields rose to 48 basis points.