Jul 23 2018

Rupee opens higher as Trump comments hurt Dollar

Financial Market Overview

23rd July, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opened higher against the U.S. currency at 68.70 amid a broad decline in the dollar after President Donald Trump expressed displeasure over its strength. Pair USDINR now at 68.68 against its previous of 68.84 on Friday.
  • We expect the pair to tip in range between 68.60-68.82 today.

Indian Equities:-

  • Equity Benchmarks have started the day on a bullish note, with the Nifty is hovering well above 11,000-mark.
  • The Sensex gains 70.13 points or 0.19% at 36566.50, while the Nifty is up 28.30 points or 0.26% at 11038.50. The market breadth is narrow as 319 shares advanced, against a decline of 144 shares, while 61 shares are unchanged.

Global Markets:-

  • Asian markets are mixed today. The Australian’s ASX200 is  down 0.85%,  the Hong Kong’s Hang Seng fell 0.06% while the Shanghai Composite is trading higher by 0.37%.
  • European markets finished lower on Friday with shares in Germany leading the region. The DAX closed down 0.98% while France’s CAC 40 was off 0.35% and London’s FTSE 100 ended lower by 0.07%.
  • US. stocks were little changed on Friday as escalating  anxieties  over  the trade war driven by Donald Trump’s latest tariff threats against China offset a string of robust earnings led by Microsoft Corp. The Dow Jones Industrial Average fell 6.44 points, or 0.03 percent, to 25,058.06, the S&P 500 lost 2.67 points, or 0.10 percent, to 2,801.82 and the Nasdaq Composite dropped 5.10 points, or 0.07 percent, to 7,820.20.
  • The dollar index slipped Monday, extending its losses from the previous sessions, after Trump, on Twitter, accused China and the European Union of “manipulating their currencies and interest rates lower” and said that dollar strength is hurting U.S. competitiveness “each passing day.” Trump’s remarks on the currency and interest rates were similar to the ones he expressed earlier when he said that the dollar’s strength was putting the U.S. to a disadvantage and that he was not thrilled about Fed’s interest rate increases.
  • The dollar declined to below 111 against the Japanese yen on Monday and was trading near a two-week high versus the euro. Among the rupee’s peers, the U.S. currency was down 0.4% against South Korea’s won and by 0.3% versus the Thai baht. The onshore-traded yuan was little changed at 6.763, well off the day’s high of 6.7442.