Feb 28 2018

Rupee stays lower as Dollar rallies on Powell testimony

Financial Market Overview

28th February, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee headed for a third straight session of losses, falling to a fresh over three-month low in afternoon session, tracking a rally in the greenback after the Federal Reserve chair’s upbeat assessment of the U.S. economy fuelled bets of a faster pace of rate increases this year.
  • India’s December-quarter GDP data is due for release after market closes today. Economists polled expect economic growth to have accelerated to 6.90% in the October-December period from 6.30% in the previous quarter.
  • The rupee was last seen at 65.27 to a dollar, its lowest since Nov. 16, against 64.87 at close in the previous session. Most other Asian currencies also traded lower against the dollar.

Indian Equities:-

  • Benchmark indices remained under pressure in afternoon, with the Sensex falling 220.85 points to 34,125.54, weighed by banks and FMCG stocks.
  • The 50-share NSE Nifty fell 77.80 points to 10,476.50 while the Nifty Midcap index was down half a percent.

Global Markets:-

  • European markets are lower today with shares in France off the most. The CAC 40 is down 0.48% while London’s FTSE 100 is off 0.45% and Germany’s DAX is lower by 0.43%..
  • Asian markets finished broadly lower today with shares in Japan leading the region. The Nikkei 225 is down 1.44% while Hong Kong’s Hang Seng is off 1.36% and China’s Shanghai Composite is lower by 0.99%.
  • The dollar index, which measures the greenback against a basket of six major rivals, rose 0.6% overnight while the 10-year U.S. treasury yield was back above 2.90% and Wall Street slumped after the new Fed Chair Jerome Powell, testifying before the U.S. House of Representatives’ Financial Services Committee, opened the possibility of more-than-expected Fed rate hikes this year. The index was last trading flat..