Jul 04 2018

Rupee opens higher on broad Dollar weakness

Financial Market Overview

04th July, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens higher against the U.S. currency at 68.52 on the back of a Chinese yuan-led rebound in regional currencies. The dollar index’s losses amid decline in long-term U.S. yields added to the positive tone for the rupee. Pair USDINR now at 68.48 against the previous close of 68.58.
  • We expect the pair to tip in range between 68.35-68.65 today.

Indian Equities:-

  • Benchmark indices as well as broader markets are flat in opening trade as investors await June quarter earnings season that will begin next week.
  • The Sensex rose 38.76 points to 35,417.36 and the Nifty gained 6.80 points at 10,706.70.

Global Markets:-

  •  Asian markets are lower today. The Hong Kong’s Hang Seng is  down 0.78%, the Australian’s ASX200 fell by 0.54% and the Shanghai Composite is trading lower by 0.52%.
  • European markets finished higher yesterday with shares in Germany leading the region. The DAX is up 0.91% while France’s CAC 40 is up 0.76% and London’s FTSE 100 is up 0.60%.
  • Wall Street dipped on Tuesday, weighed down by Apple, Facebook and other technology stocks in a shortened trading session ahead of the U.S. July 4 holiday. The Dow Jones Industrial Average fell 132.36 points, or 0.54 percent, to 24,174.82, the S&P 500 lost 13.49 points, or 0.49 percent, to 2,713.22 and the Nasdaq Composite dropped 65.01 points, or 0.86 percent, to 7,502.67.
  • The yuan was up 0.2% against the dollar at 6.6280 against the dollar on Wednesday, well off its yesterday’s lows of 6.71. The country’s central bank yesterday said it was closely watching fluctuations in the foreign exchange market and would seek to keep the yuan at a reasonable level. Chinese equities and the yuan have come under pressure in recent days as U.S. tariffs on $34 billion worth of Chinese good come into effect this Friday. Among other Asian currencies on Wednesday, the Korean won advanced 0.4%, and the Indonesian rupiah and Thai baht rose by 0.2% each.
  • The dollar index slipped on Tuesday after 10-year U.S. yields fell to near their lowest level in a month. The fall in yields came amid a technology shares-led selloff on the Wall Street.