Feb 08 2018

Rupee lower on Asian cues post Dollar rally

Financial Market Overview

08th February, 2018

Morning Coffee:-                                                                                  



  • Indian rupee open lower against the dollar at 64.37, tracking losses in most Asian peers, following a strong overnight rally in the greenback that helped it post its best one-day gain in over three months. Pair USDINR now at 64.32 against 64.28 previous close.
  • Yesterday, India’s Monetary Policy Committee held interest rates steady at 6% as expected, after inflation quickened to a 17-month high and a spike in crude oil prices fanned concerns of further price gains. The MPC maintained its ‘neutral’ policy stance, but projected inflation to rise next financial year. It also lowered the growth projection for the fiscal year ending Mar. 31 to 6.6%. The six-member rate-setting panel had cut the rate by 25 basis points in August.
  • Pair to tip in range between 64.20-64.45 today.

Indian Equities:-

  • Benchmark indices rebounded with mild gains on Thursday after shedding more than 2,000 points in previous seven consecutive sessions.
  • The 30-share BSE Sensex was up 94.37 points at 34,177.08 and the 50-share NSE Nifty gained 23.30 points at 10,500.

Global Markets:-

  • Asian markets are mixed today ,the Shanghai Composite is down 1.50%, the Hong Kong Heng Seng fell 0.20% while the Australian ASX200 is trading mildly higher by 0.04%.
  • European markets closed sharply higher on Wednesday with shares in London leading the region. The FTSE 100 is up 1.93% while France’s CAC 40 is up 1.82% and Germany’s DAX is up 1.60%.
  • S. stocks ran out of steam on Wednesday after an early surge, in a sign that investors are still spooked by the market’s recent retreat and wary more fallout is to come. The Dow Jones Industrial Average fell 19.42 points, or 0.08 percent, to 24,893.35, the S&P 500 lost 13.48 points, or 0.50 percent, to 2,681.66 and the Nasdaq Composite dropped 63.90 points, or 0.9 percent, to 7,051.98.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended up 0.7% overnight, also marking its biggest single-session gain since October, helped by weakness in the euro.
  • The euro fell 0.9% against the greenback yesterday amid comments from European Central Bank policymaker Ewald Nowotny in a newspaper interview earlier this month that the United States Treasury Department was deliberately putting downward pressure on the dollar.
  • The U.S. Senate members managed to reach a two-year budget deal yesterday that would raise government spending by around $300 billion over the next two years, but in the process widen the federal deficit.  If approved by the Senate, the bill would go to President Donald Trump for his nod.