Friday, 10 July 2020
- Dollar, safe-haven currencies buoyed by U.S. coronavirus anxiety
- Asian stocks fall on virus worry, China stock rally pauses
- Oil dips, heading for weekly loss as virus cases rise
The dollar and other safe-haven currencies were well bid on Friday after a surge in new coronavirus cases in the United States further undermined the case for a quick economic recovery.
The caution helped to lift the dollar index .DXY to 96.798 from near one-month low of 96.233 touched on Thursday. The euro fell to $1.1288 slipping back after having scaled a one-month high of $1.1371 on Thursday. Against the safe-haven yen, the dollar traded at 107.20 yen having touched its lowest level in 10 days in the previous trade.
Our View on USD / INR
The rupee is likely to open around 75.15.
The Rupee is likely to have resistance at 75.26 (14 DMA) and 75.53 (Bollinger Band) and support at 74.91 (7 DMA) and 74.43 (Bollinger Band)
Asian shares and U.S. stock futures fell on Friday as record-breaking new coronavirus cases in several U.S. states stoked concerns that new lockdowns could derail an economic recovery, while investors looked forward to earnings season.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.76%. Australian stocks dropped 0.42%, while Japanese stocks declined by 0.4%. Shares in China fell 0.72%, the first decline in more than a week, as investors booked profits on a surge in equities to a five-year high.
E-mini futures for the S&P 500 erased early gains to trade down 0.01%. On Thursday, the Dow Jones Industrial Average fell 1.39% and the S&P 500 dropped 0.56%, but the tech-heavy Nasdaq rose 0.53% to its fifth record closing high in six days.
Our View on Stock Market
The Indian stock market is expected to open negative around 60 to 70 points from yesterday close.
The Nifty futures are likely to open around 10,750.
The likely range for the day is 10,600 – 10,800
Oil prices dipped on Friday after steep falls in the previous session and were set for a weekly decline on worries renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere will suppress fuel demand.
Brent crude was down by 7 cents, or 0.2%, at $42.28 a barrel after falling more than 2% on Thursday. U.S. oil fell 13 cents, or 0.3%, at $39.49 a barrel after a drop of 3% in the previous session.
Source : Reuters
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