Mar 19 2018

Rupee opens lower on broad Dollar strength

Financial Market Overview

19th March, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens lower tracking dollar’s advance against most regional currencies amid Fed rate outlook. Pair USDINR now at 65.04 against 64.93 previous close.
  • Data released after markets closed on Friday showed that India’s current account deficit in October-December widened from the preceding quarter as well as the year-earlier period. Current account deficit totaled $13.5 billion, or 2% of the gross domestic product, in the third quarter of this fiscal year. The shortfall widened from $8 billion, or 1.4% of GDP, in the year-ago quarter, and from $7.2 billion, or 1.1% of GDP, in July-September.
  • Pair to tip in range between 64.90-65.10.

Indian Equities:-

  • Benchmark indices opened the week mildly higher amid volatility and mixed Asian cues on Monday. Political uncertainty after TDP exit from NDA government last week seems digested by the market.
  • The 30-share BSE Sensex was up 60.89 points at 33,236.89 and the 50-share NSE Nifty was up 21.40 points at 10,216.60.

Global Markets:-

  • Asian markets are higher today. The Australian ASX200 is up 0.31%, Hong Kong’s Hang Seng gains 0.25% while the Shanghai Composite is trading higher by 0.17%.
  • European markets finished higher on Friday with shares in Germany leading the region. The DAX is up 0.36% while London’s FTSE 100 is up 0.34% and France’s CAC 40 is up 0.29%.
  • S. stocks rose on Friday boosted by strong industrial output numbers though Wall Street’s three major indexes posted losses for the week. The Dow Jones Industrial Average rose 72.91 points, or 0.29 percent, to 24,946.57, the S&P 500 gained 4.51 points, or 0.16 percent, to 2,751.84 and the Nasdaq Composite added 0.25 point, or 0 percent, to 7,481.99.
  • The dollar index edged up in early Asia trading and most of rupee’s peers were weaker, a day before the beginning of the two-day Federal Reserve meeting. The upbeat U.S. industrial production and consumer confidence had boosted the index on Friday, helping it clinch its fourth consecutive weekly advance. With a 25 basis-point interest rate increase penciled in, attention is on whether there any changes to the Fed’s dot plot, which in December signaled three rate hikes in 2018.