Thursday, 25 June 2020
Our View in a Snapshot
|Expected Open||10180 ( – 110 )||75.70|
|Expected Range||9950 – 10250||75.50 – 75.90|
- Dollar buoyed on safety bids as U.S. coronavirus numbers dim quick recovery hopes
- Asia set to track Wall Street retreat as second wave derails recovery hopes
- Oil dives over 5% as U.S. crude stocks hit record, COVID cases mount
The dollar held firm on Thursday as an increase in coronavirus cases in the United States undermined hopes for a quick turnaround in the pandemic-hit economy and prompted traders to cuts bets on riskier currencies.
The dollar’s index against a basket of currencies strengthened to 97.21.The euro retreated to $1.1251 while the British pound also stepped back to $1.2423. Commodity currencies, which had been supported by rally in oil and commodity prices, also took a hit. The Australian dollar traded at $0.6864 after losing 0.90% the previous day while the Canadian dollar drooped to C$1.3644 to the dollar. Against the yen, the dollar also jumped back to 107.05 yen from a 1 1/2-month low of 106.075 touched on Tuesday.
Our View on USD / INR
The Indian rupee is expected to weaken during the day as Equities are likely to take a dip and dollar is strong against riskier assets
The rupee will likely be quoted around 75.70 to a dollar in early trades.
The Rupee is likely to trade in the Range of 75.50 to 75.90
Asian markets were set to follow a tumble in Wall Street stocks and oil prices on Thursday after surging U.S. coronavirus cases and the International Monetary Fund’s downgrade to global economic projections shook confidence in a recovery.
Australian S&P/ASX 200 futures lost 1.55% in early trading. Japan’s Nikkei 225 futures fell 1.1%. MSCI’s gauge of stocks across the globe shed 2.24%. On Wall Street, the Dow Jones Industrial Average fell 2.72%, the S&P 500 lost 2.59% and the Nasdaq Composite dropped 2.19%.
Our View on Stock Market
The Indian stock market is expected to open deep in the red around 100 to 120 points negative from yesterday close.
The Nifty futures are likely to open around 10,180.
The likely range for the day is 9,950 – 10,250
Oil prices tumbled over 5%, or more than $2 a barrel on Wednesday, after U.S. crude storage hit another record and coronavirus cases rebounded in countries like Germany and surged in heavily populated areas of the United States.
Brent crude settled at $40.31 a barrel, down $2.32, or 5.4%. U.S. West Texas Intermediate (WTI) crude settled at $38.01 a barrel, losing $2.36, or 5.8%. U.S. crude oil inventories swelled last week by 1.4 million barrels, exceeding expectations for a 299,000-barrel rise.
Source : Reuters