Wednesday, 19 August 2020
- Dollar falls to 27-month low as U.S. stocks hit record highs
- Asian stocks at seven-month highs after Wall Street cracks more records
- Oil steadies as demand fears offset high OPEC+ compliance
Major Currency Rates at 8:35 AM
The U.S. dollar index fell to its lowest in more than two years on Tuesday as the ongoing effects of the Federal Reserve’s stimulus programs weakened the greenback broadly for the fifth consecutive day and lifted U.S. stock indexes to record highs.
Although the dollar often functions as a safe-haven investment in moments of crisis, it has fallen since the Federal Reserve’s intervention into financial markets to maintain liquidity in the midst of the coronavirus pandemic. The Fed’s programs have pushed risk assets to all-time highs and reduced demand for safe-havens, even as economic data has painted a bleak picture of the U.S. recovery.
USD / INR Technical Analysis
Advise for Importers
Importers are advised to book part of their import payables of August as this is the lower band of the Rupee range for past . We expect RBI to buy dollars at these levels and not allow rupee to fall further.
Asian shares climbed to a seven-month peak on Wednesday tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic.
MSCI’s broadest index of Asia-Pacific shares outside of Japan rose 0.3%, up for a third straight day to 570.80 points, a level not seen since late January. The gains were driven by Australian shares, up 0.8% and South Korea, which added 0.6%. Japan’s Nikkei nudged up too though Chinese shares started weaker with the blue-chip CSI300 index off 0.7%.
Oil prices steadied on Tuesday as high compliance with supply cuts from the OPEC+ producer group offset demand fears from the new coronavirus.
Brent crude futures rose 9 cents to settle at $45.46 a barrel. U.S. West Texas Intermediate (WTI) crude futures ended unchanged at $42.89 a barrel.
Disclaimer : All information in this report is collected from various sites on internet. The technical analysis is authors own views. We do not take any responsibility for any errors and omissions.