Rupee Opened Higher Tracking decline in the dollar index

Rupee Opened Higher Tracking decline in the dollar index

28 Aug 2018 09:34 AM
Myforexeye Research Report

Financial Market Overview

28th August, 2018


  • The Indian rupee opened higher by 14 paise at 70.02 per dollar compared with its previous close of 70.16. Following the higher opening on the back of positive global leads, the rupee will “more than likely witness a turnaround” and be back to losing ways.
  • Decline in the dollar index in the wake of Federal Reserve Chairman Jerome Powell’s comments on inflation. Month-end dollar demand from corporates, however, is expected to limit the potential upside on the rupee.
  • We Expect the pair to trade in the range between 69.85 to 70.20


Indian Equities:-

  • It’s another record high start for the market on Tuesday morning, with the Nifty hitting 11,700 for the first time, while the Sensex rose over 150 points to hit another record high in the opening trade. 
  • The Sensex is up 182.75 points or 0.47% at 38876.86, while the Nifty is up 56.30 points or 0.48% at 11748.30. The market breadth is positive as 602 shares advanced, against a decline of 216 shares, while 47 shares were unchanged. 
  • Among top gainers are Kotak Mahindra Bank, M&M, HDFC, Lupin and Page Industries, while Yes Bank, HPCL, Titan and BPCL have lost the most. 


Global Markets:-

  • Asian markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.12% while the Hang Seng is up 0.20%. And The Nikkei 225 is up 0.64%The Australian's ASX200 is little positive today by 46 points and 0.74% up.
  • European markets closed higher on Monday with shares in Germany leading the region. The DAX is up 1.16% while France's CAC 40 is up 0.86% and London's FTSE 100 is up 0.19%.
  • A broad-based rally pushed U.S. stocks higher on Monday, with the S&P 500 and the Nasdaq closing at record highs for the second consecutive session as investor sentiment was buoyed by a trade agreement reached between the United States and Mexico.
  • The Dow Jones Industrial Average rose 259.29 points, or 1.01 percent, to 26,049.64, the S&P 500 gained 22.05 points, or 0.77 percent, to 2,896.74 and the Nasdaq Composite added 71.92 points, or 0.91 percent, to 8,017.90.
  • The dollar index declined for the ninth time in the last ten sessions, closing at its lowest level in a month. The latest bout of weakness for the dollar against a basket of six currencies comes amid remarks by Powell that the inflation in U.S. is unlikely to accelerate beyond the central bank’s target. The weakness on the dollar index was compounded by U.S. and Mexico reaching a trade deal, which prompted a rally in risk assets and reduced the appeal of the safe-haven U.S. currency. The Mexican currency advanced by 0.8% against the dollar on Monday and the benchmark S&P 500 Index recorded fresh record highs.
  • Ten-year US yield at 2.86% after rising over 3 basis points in previous session.



Date : Aug-2018