Rupee lower on global risk off amid possibility of U.S military strike on Syria

Rupee lower on global risk off amid possibility of U.S military strike on Syria

12 Apr 2018 10:03 AM
Myforexeye Research Report

Financial Market Overview

12th April, 2018

Morning Coffee:-                                                                                  



  • Indian rupee started weaken against the dollar in early trades as crude oil prices rally amid the possibility of a U.S. military strike on Syria. Pair USDINR now at 65.43 against 65.30 at previous close.
  • India is due to release the retail inflation data for March later today. Inflation is expected to have eased to 4.20% on year in March from 4.44% in February. India’s Monetary Policy Committee, which held rates steady earlier this month, targets inflation at 4%.
  • Pair to tip in range between 65.15-65.45.

Indian Equities:-

  • Benchmark indices opened flat amid weak global cues and spike in crude oil prices, as investors await corporate earnings and macro data.
  • The 30-share BSE Sensex was up 47.56 points at 33,988 while the 50-share NSE Nifty fell 17.40 points to 10,399.80.

Global Markets:-

  • Asian markets are lower today. The Shanghai Composite is down 0.60%  the Australian's ASX200 lost 0.37% and the Hong Kong's Hang Seng is trading lower by 0.35%.
  • European markets finished lower yesterday with shares in Germany leading the region. The DAX was down 0.83% while France's CAC 40 was off 0.56% and London's FTSE 100 was lower by 0.13%.
  • Wall Street fell on Wednesday as possible U.S. military action against Syria stoked investor concerns about geopolitical risks and minutes from the latest Federal Reserve meeting sparked worries about a more hawkish view on interest rate increases. The Dow Jones Industrial Average fell 218.62 points, or 0.9 percent, to 24,189.38, the S&P 500 lost 14.68 points, or 0.55 percent, to 2,642.19 and the Nasdaq Composite dropped 25.28 points, or 0.36 percent, to 7,069.03.
  • The nearest-month Brent crude contract gained 1.44% in the previous session to $72.06, its highest levels in more than three years following reports that Saudi Arabia claimed to have intercepted missiles over Riyadh.
  • President Donald Trump warned that the U.S. was preparing for a military strike on Syria following a suspected poison gas attack over the weekend. Concerns over a potential conflict between the U.S. and Russia, which supports Syrian President Bashar al-Assad, have offset optimism about easing trade tensions between the U.S. and China.
  • Minutes of the U.S. Federal Reserve’s last policy meeting showed policymakers felt the U.S. economy would improve further and inflation would rise in the coming months, with majority agreeing to a gradual approach to hiking interest rates. Separately, data showed U.S. core Consumer Price Index rose 2.1% last month against a 1.8% rise in February.

Date : Apr-2018