Jun 20 2018

Rupee opens higher tracking recovery in regional currencies

Financial Market Overview

20th June, 2018

Morning Coffee:-                                                                                  



  • Indian rupee opened higher against the dollar at 68.10, as Asian currencies managed a slight recovery after two days of losses caused by U.S.-China trade tensions. Pair USDINR now at 68.10 against 68.38 previous close.
  • The focus for rupee traders will be on the minutes of the Monetary Policy Committee meeting due after market hours. The committee had, at its last meeting, unanimously raised interest rates by a quarter percentage points, citing rising inflation risks.
  • We expect the pair to tip in range between 68.00-68.28 today.

Indian Equities:-

  • Benchmark indices started off the day on a positive note Wednesday tracking recovery in the  Rupee and Asian peers caused by escalated trade war tensions.
  • The Sensex gians 124.33 points to 35,411.07 and the Nifty advances 39.55 points to 10,750.00.

Global Markets:-

  • Asian markets are mixed today The Australian ASX200 is gains 0.77%, the Hong Kong’s Hang Seng advances 0.18% while the Shanghai Composite is trading lower by 0.59%.
  • European markets finished broadly lower yesterday with shares in Germany leading the region. The DAX is down 1.22% while France’s CAC 40 is off 1.10% and London’s FTSE 100 is lower by 0.36%.
  • US. stocks fell on Tuesday as a sharp escalation in the trade dispute between the United States and China rattled markets and put the Dow Jones Industrial Average back in negative territory for the year. The Dow Jones Industrial Average fell 287.33 points, or 1.15 percent, to 24,700.14, the S&P 500 lost 11.18 points, or 0.40 percent, to 2,762.57 and the Nasdaq Composite dropped 21.44 points, or 0.28 percent, to 7,725.59.
  • The Chinese yuan edged higher on Wednesday, a day after it fell by the most in four months amid President Donald Trump’s threat to impose more tariffs on imports from Asia’s largest economy. China’s central bank urged investors to remain calm and pledged to use its monetary policy amid heightened trade tensions with the U.S, citing an interview of the People’s Bank of China head with the Shanghai Securities News.
  • In other regional currencies on Wednesday, the Korean won was up 0.1% after falling to its lowest level this year yesterday.
  • US. housing starts jumped 5% to a seasonally adjusted annual rate of 1.350 million units last month, the highest level since 2007 and better than the 1.310 million units expected by economists poll. Building permits fell 4.6% to a rate of 1.301 million units.