Jun 21 2018

Rupee opens lower on Fed chair Powell comments

Financial Market Overview

21st June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opened lower against the dollar, mirroring weakness in regional currencies, after the Federal Reserve Chair Jerome Powell reiterated the central bank’s commitment to more interest rate increases. Pair USDINR now at 68.19 against 68.07 previous close.
  • We expect the pair to tip in range between 68.03-68.28 today.

Indian Equities:-

  • Benchmark indices started off the day on a positive note Thursday, tracking positive Asian cues.
  • The 30-share BSE Sensex rose 92.13 points to 35,639.46 and the 50-share NSE Nifty gained 25.70 points at 10,797.70.

Global Markets:-

  • Asian markets are mixed today The Hong Kong’s Heng Seng down 0.18%, the Shanghai Composite fell 0.03% while the Australian’s ASX200 is trading higher by 1.09%.
  • European markets finished mixed as of the most recent closing prices on Wednesday. The FTSE 100 gained 0.31% and the DAX rose 0.14%. The CAC 40 lost 0.34%.
  • The Nasdaq closed at a record on Wednesday, lifted by a climb in large-cap tech and consumer discretionary names, while the Dow and S&P 500 were hemmed in as concerns over an escalation in the U.S.-China trade skirmish simmered. The Dow Jones Industrial Average fell 42.41 points, or 0.17 percent, to 24,657.8, the S&P 500 gained 4.73 points, or 0.17 percent, to 2,767.32 and the Nasdaq Composite added 55.93 points, or 0.72 percent, to 7,781.52.
  • During a central banking conference in Portugal, Powell said the case for continued gradual interest-rate increases remained “strong,” considering low levels of unemployment and inflation moving close to the Fed’s desired levels. His comments come after the U.S. monetary authority last week raised interest rates for the second time this year and its dot plot suggested that it could possibly hike rates two more times before the end of the year.
  • Crude oil prices edged lower in Asia trading on Thursday. On Wednesday, Iran signaled it could agree on a small increase in the group’s output during a meeting to be held at OPEC’s headquarters in Vienna on June 22.
  • The Chinese yuan led regional currencies lower on Thursday, falling to its lowest level since mid-January.