Feb 22 2018

Rupee opens lower as Fed minutes support rate hike bet

Financial Market Overview

22nd February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open lower against the dollar at 65.05, as the greenback hit a one-week high after Fed minutes strengthened bets of further rate hikes this year backed by likely acceleration in economic output. Pair USDINR now at 65.02 against 64.76 previous close.
  • According to minutes of India’s Monetary Policy Committee’s February meeting released yesterday, members warned of inflation risks going ahead, but stressed the need to await incoming data on inflation and growth.
  • Pair to tip in range between 64.90-65.20.

Indian Equities:-

  • Benchmark indices began the day on a negative note, with the Sensex cracking over 100 points. The Nifty was trading below 10,350-mark.
  • The Sensex is currently down 117.85 points or 0.35% at 33727.01, and the Nifty is down 52.95 points or 0.51% at 10344.50. The market breadth favours the decline as 192 shares advanced, against a decline of 329 shares , while 91 shares are unchanged.

Global Markets:-

  • Asian Shares are mixed today, the Hang Seng is down 0.95% while the Australian ASX200 is trading higher by 0.11% and the Shanghai Composite gains 1.95%.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.48% and the CAC 40 rose 0.23%. The DAX lost 0.14%.
  • S. stocks closed lower on Wednesday in a rocky session after the release of the minutes from the Federal Reserve’s January meeting pushed yields on the benchmark 10-year U.S. Treasury note to a four-year high. The Dow Jones Industrial Average fell 168 points, or 0.67 percent, to 24,796.75, the S&P 500 lost 14.87 points, or 0.55 percent, to 2,701.39 and the Nasdaq Composite dropped 16.08 points, or 0.22 percent, to 7,218.23.
  • The dollar index, which measures the greenback against a basket of six major rivals, traded at a one-week high before ending up 0.32% overnight and was last trading up 0.08%, headed for its third consecutive session of gains.
  • The Federal Reserve’s latest policy meeting minutes revealed the policymakers were more convinced about the need to continue raising rates and most of them believed inflation will accelerate. They also revised their economic outlook forecasts upwards since December.
  • S. Treasury yields also gained in reaction to the Fed minutes. The U.S. 10-year yield rose to a high of 2.957%, highest since 2014.