Feb 27 2018

Rupee remianed lower before Fed chair testimony

Financial Market Overview

27th February, 2018

Noon Update:-                                                                                  



  • The Indian rupee remained lower in a choppy afternoon session, as foreign lenders’ greenback purchases outweighed the gains triggered by state-run banks’ dollar sales.
  • Traders await U.S. Federal Reserve Chair Jerome Powell’s congressional testimony later today for further cues.
  • The rupee was last seen at 64.91 to a dollar, against 64.79 at close in the previous session. The currency had opened at 64.81, but rose to a day’s high of 64.76, before reversing the gains to touch a low of 64.94. Other Asian currencies traded mixed.

Indian Equities:-

  • Indian shares edged lower on Tuesday, dragged by bank stocks after Punjab National Bank uncovered more fraudulent transactions, while investors also traded cautiously ahead of key domestic economic data this week.
  • The broader NSE index was down 0.26 percent at 10,555.50, while the benchmark BSE index was 0.19 percent lower at 34,380.27.

Global Markets:-

  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.24% while Germany’s DAX is up 0.06% and France’s CAC 40 is up 0.07%.
  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 1.07%, while the Shanghai Composite led the Hang Seng lower. They fell 1.13% and 0.73% respectively.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.03% lower overnight and was last down 0.08%, as markets awaited Powell’s first congressional testimony later today.
  • His testimony comes in the wake of concerns that higher inflation could prompt the Fed to increase rates more quickly than what is being currently expected. With next month’s rate hike more or less a certainty, the key question for investors is whether they see two or three additional rate increases thereafter.