Risk aversion back in action, USDINR looks to test 51.50...
Indian rupee extended its weakness for the second consecutive day against the US dollar on Wednesday, weighed by losses in domestic shares and persistent dollar demand from importers ahead of long weekend. While, rupee sentiments also dampened by global US dollar strength following Fed minutes which revealed that Fed is unlikely to introduce another round of QE.
Finally, it ended at 51.11 per dollar, off its intraday low of 51.24 per dollar but 39 paise weaker than Tuesday’s close of 50.72 per dollar.
After a long weekend, Indian rupee is set to open weaker around 51.22 vs. 51.11 closes on Wednesday, as risk aversion sentiments back in action in a holiday thin trade on softer US non-farm payroll data combined with renewed debt concern over Spain economic health, pushing US dollar higher across the board.
Global Markets Update
US Markets: Markets ended week on tepid note
Markets ended flat on Thursday, as positive investor sentiment lost momentum, as the Federal Reserve earlier in the week toned down the likelihood of a QE3. Economic data released on Friday could result in a negative market sentiment for the start of the new week, as the U.S. Nonfarm payrolls rose by 120,000 in March which was far less than an expected 203,000.
The US Markets closed flat, with the Dow and S&P ending with a negative bias of 15 pts (0.11%) and 1 pt (0.06%) while the NASDAQ ended with a positive bias of 12 pts (0.40%).
European Markets: Rising borrowing costs for Spain, pin down markets
Markets ended flat on Thursday, registering its third straight weekly loss, it’s the longest losing streak since August, as Spain’s rising borrowing costs hinted at debt concerns recur facing in the Euro area. Counters of banks, especially those with high exposure to peripheral debt were the major underperformers in the market.
European indices closed flat, with the FTSE and CAC closing with a positive bias of 20 pts (0.35%) and 6 pts (0.19%) while the DAX closed with a negative bias of 9 pts (0.13%) respectively. European Markets will remain closed today (9th April 2012) on account of ‘Easter Monday’.
Asian Markets:Markets open in the red, tracking weak global cues
Asian markets are currently trading in the red on the back of negative global cues from other world markets from last week. China's battle against inflation continues as consumer prices rose by a rate of 3.6% as against market expectations of 3.3%.
All Asian Markets including the Nikkei, Hang Seng and Strait Times are trading with losses of 140 pts (1.45%), 198 pts (0.95%) and 25 pts (0.84%). The SGX Nifty is currently trading at 5276 level, down 45 pts from its previous close.
Events to Watch out for today
Indian Market Events
12th April 2012 – Index of Industrial Production
13th April 2012 – WPI
European Market Events
12th April 2012 – Industrial Production
US Market Events
12th April 2012 – Weekly Jobless Claims
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