Jun 27 2018

Rupee opens sharply lower tracking continued weakness in Chinese Yuan

Financial Market Overview

27th June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opened sharply lower against the dollar at 68.43, amid a jump in Brent crude prices and continued weakness in the Chinese yuan, which fell below a closely watched level. Pair USDINR now at 68.48 against 68.24 previous close.
  • We expect the pair to tip in range between 68.30-68.65 today.

Indian Equities:-

  • The market continued to consolidate ahead of expiry of June futures & options contracts on Thursday. Asian markets traded lower as trade-related headlines took center stage for investors.
  • The 30-share BSE Sensex rose 33.10 points to 35,523.14 while the 50-share NSE Nifty fell 5.00 points to 10,764.20.

Global Markets:-

  • Asian equities are mixed today. The Hong Kong’s Hang Seng falls 0.58%, The Shanghai Composite is down 0.45% while the Australian’s ASX200 is trading higher by 0.07%.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.37%, while the DAX led the CAC 40 lower. They fell 0.29% and 0.05% respectively.
  • US. stocks rebounded on Tuesday on gains in the energy, technology and consumer discretionary sectors after a sharp sell-off a day earlier on spiraling global trade tensions. The Dow Jones Industrial Average rose 29.49 points, or 0.12 percent, to 24,282.29, the S&P 500 gained 5.97 points, or 0.22 percent, to 2,723.04 and the Nasdaq Composite added 29.62 points, or 0.39 percent, to 7,561.63.
  • The yuan tumbled below 6.60 against the dollar amid a heightening trade row with the U.S. and wagers that China’s central bank will allow the currency to decline in a bid to counter the effects of trade frictions. The Chinese currency has lost more than 3% this month, in comparison with the 2.6% decline suffered in August 2015 when the nation’s central bank shocked financial markets by devaluing it.
  • Brent crude rose by more than 2% in the previous session to climb back above the $76 per barrel mark and U.S. benchmark crude rallied 3.5% to reclaim $70 per barrel. The jump came as the U.S. pushed allies to halt imports from Iran, which analysts said would constrain supply.