Feb 21 2018

Rupee opens lower on strong Dollar; Fed Minutes eyed

Financial Market Overview

21st February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open lower against the dollar at 64.90, tracking overnight greenback strength underpinned by gains in U.S. Treasury yields ahead of the release of the Federal Reserve’s latest policy meeting minutes due post market hours. Pair USDINR now at 64.80 against 64.79 previous close.
  • Pair to tip in range between 64.60-64.90.

Indian Equities:-

  • The equity market has begun the day on a positive note, with the Sensex gaining over 100 points, while the Nifty reclaimed 10,400.
  • The Sensex is up 168.98 points or 0.50% at 33872.57, while the Nifty is up 46.60 points or 0.45% at 10407.00. The market breadth is positive as 358 shares advanced, against a decline of 138 shares, while 81 shares are unchanged.

Global Markets:-

  • Asian Shares are higher today, the Hang Seng is up 0.92%, Australian ASX200 is trading higher by 0.09% while the Shanghai Composite is closed for a Chinese holiday.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.83% and the CAC 40 rose 0.64%. The FTSE 100 lost 0.01%.
  • The Dow and S&P 500 fell on Tuesday to snap a six-session winning streak as a sharp decline in Walmart weighed heavily, but gains in Amazon and chip stocks helped the Nasdaq hold near the unchanged mark. The Dow Jones Industrial Average fell 256.62 points, or 1.02 percent, to 24,962.76, the S&P 500 lost 15.98 points, or 0.58 percent, to 2,716.24 and the Nasdaq Composite dropped 5.16 points, or 0.07 percent, to 7,234.31.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.7% higher overnight, also posting its largest single-session gain since Feb. 7, aided by gains in U.S treasury yields.
  • S. Treasury yields gained for the first time in three sessions yesterday, hovering close to its highest levels since 2014, on fresh supply of government debt and amid expectations the Fed may pursue an accelerated pace of rate hikes following a pick-up in inflation.
  • Minutes of the central bank’s January meeting will be released later today while the Fed is set to next meet on Mar. 20-Mar. 21. As many as 83.1% of traders expect a U.S. rate hike of 25 basis points next month, according to the CME FedWatch Tool. The 10-year Treasury yield ended at 2.89% yesterday and was last trading up 2.90%.