Jan 30 2018

Rupee opens lower as Dollar recovers on rising US. bond yields

Financial Market Overview

30th January, 2018

Morning Coffee:-                                                                                  



  • Indian rupee open lower against the dollar at 63.69, as the greenback continued to recover from its 2014-lows tracking an uptrend in U.S. bond yields, even as traders await cues from the two-day Fed policy meet that begins today. Pair USDINR now at 63.66, against 63.57 previous close.
  • Pair to tip in range between 63.55-63.75 today.

Indian Equities:-

  • Benchmark indices reversed some previous day’s gains on Tuesday, driven by profit booking in technology, select private banks and index heavyweights ITC & Reliance Industries.
  • The 30-share BSE Sensex was down 82.24 points at 36,201.01 and the 50-share NSE Nifty fell 40.20 points to 11,090.20.
  • TCS, ICICI Bank, ITC, Reliance Industries, HDFC Bank, Infosys, L&T and Vedanta were early losers whereas Bajaj Auto, Hero Motocorp, Indiabulls Housing, GAIL, BPCL, NTPC and HPCL were gainers.

Global Markets:-

  • Asian markets are lower today ,the Shanghai  Composite fell by 0.74%, the ASX200 is trading down by 0.57% and the Hong Kong Hang Seng is lower by 0.32%.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.08%, while the CAC 40 led the DAX lower. They fell 0.14% and 0.12% respectively.
  • Wall Street pulled back from record highs on Monday with the S&P 500 marking its biggest one-day percentage decline in about five months, weighed down by a slide in Apple shares. The Dow Jones Industrial Average fell 177.23 points, or 0.67 percent, to 26,439.48, the S&P 500 lost 19.34 points, or 0.67 percent, to 2,853.53 and the Nasdaq Composite dropped 39.27 points, or 0.52 percent, to 7,466.51.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.3% higher overnight, tracking higher U.S. Treasury yields. The index was last trading up 0.17%. On Jan. 26, the dollar fell to the lowest since December 2014.
  • The 10-year U.S. Treasury yield was trading near its highest level since April 2014, even as traders await the outcome of the Federal Reserve’s policy meeting tomorrow. Most market participants expect status quo at the review.
  • Also supporting the dollar was data from the Commerce Department that showed U.S. consumer spending rose 0.4% in December, even as savings fell to a 10-year low. Traders also await U.S. President Donald Trump’s State of the Union speech due later today.