Jul 18 2018

Rupee opens marginally higher as Oil slide offsets broad Dollar strength

Financial Market Overview

18th July, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opened marginally higher at 68.42 against the U.S. currency after Brent crude prices continued to hover near three-month lows, helping offset broad dollar strength following the Federal Reserve chair’s upbeat comments on the U.S. economy. Pair USDINR now at 68.39 against the previous close of 68.45.
  • We expect the pair to tip in range between 68.27-68.52 today.

Indian Equities:-

  • A Positive start of the market on Wednesday morning, with the Sensex hitting a fresh record high, rising 200 points, while the Nifty opened above 11,050-mark.
  • The Sensex is up 198.95 points or 0.54% at 36718.91, while the Nifty is up 62.50 points or 0.57% at 11070.50. The market breadth is positive as 354 shares have advanced, while 79 shares have declined, and 46 shares are unchanged.

Global Markets:-

  • Asian markets are higher today. The Australian’s ASX200 gains 0.69%,  the Shanghai Composite is up 0.47% and the Hong Kong’s  Hang Seng is trading higher by 0.33%.
  • European markets finished higher yesterday with shares in Germany leading the region. The DAX closed up 0.80% while London’s FTSE 100 gained 0.34% and France’s CAC 40 ended higher by 0.24%.
  • US. stocks rose on Tuesday and the Dow posted its fourth consecutive session of gains. Based on the latest available data, the Dow Jones Industrial Average rose 55.53 points, or 0.22 percent, to 25,119.89, the S&P 500 gained 11.12 points, or 0.40 percent, to 2,809.55 and the Nasdaq Composite added 49.40 points, or 0.63 percent, to 7,855.12.
  • The dollar index climbed to more-than-two-week highs on Tuesday after Fed chair Jerome Powell, in his statement, provided a positive assessment of the U.S. economy and signalled that the central bank will maintain the course over interest rate increases. Powell said with inflation close to the Fed’s objective and considering the robust job market, gradually raising the federal funds rate was the best way forward. On the recent protectionist measures taken by President Donald Trump, Powell said the tariffs were a wrong approach and can hurt economic growth.
  • The South Korean won, Malaysian ringgit, and Indonesian rupiah paced losses in Asian currencies on Wednesday, falling 0.2% each.
  • Brent crude prices were back below the $72/barrel, the lowest since mid-April. The U.S. benchmark oil extended losses for the week to fall to the lowest in a month.