25 January 2022
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Dollar near two-week high amid jitters over hawkish Fed, Ukraine tensions
- Hong Kong, Japan stocks down 2% as Asia-Pacific markets tumble following volatility on Wall Street
- Oil falls 2% as Fed rate hike talk spooks risk markets
The Indian rupee is expected to weaken against the U.S. currency as prospects of faster policy normalization by the Federal Reserve prompted risk aversion, sending investors to the safety of the dollar.
The rupee will likely open around 74.60 to a dollar compared with 74.56 yesterday. The rupee had dropped to 74.69 yesterday, tracking a slump in local equities. The Sensex fell for the fifth straight day, plunging 2.6%, to end at its lowest level in a month.
The safe-haven U.S. dollar hovered near a two-week high against its major peers on Tuesday amid escalating worries about both a faster pace of Federal Reserve policy tightening and potential military conflict in Ukraine.
The Fed begins a two-day policy meeting later in the global day, and investors will be anxious for any hints on the timing and pace of rate hikes, as well as about how fast the central bank will shrink its more-than $8 trillion holdings of Treasuries and mortgage debt.
The dollar index , which measures the greenback against six major peers, edged up slightly to 95.920, after climbing as high as 96.135 overnight for the first time since Jan. 10.
The euro slipped 0.08% to $1.1323, leaving it near the middle of its range of the past week. Overnight it fell as low as $1.1291 for the first time since Jan. 10. The dollar eased slightly to 113.87 versus fellow safe haven the yen , after recovering from a one-month low of 113.47 touched in the previous session. The Aussie traded 0.09% higher at $0.7150 after briefly climbing as much as 0.45% as a key inflation gauge jumped to a 7 1/2-year peak.
Japan and Hong Kong stocks dropped 2% as Asia-Pacific markets tumbled on Tuesday after a volatile session overnight on Wall Street.
The Nikkei 225 fell nearly 2% as auto and tech stocks were largely down, and the Topix fell 1.84%. Hong Kong’s Hang Seng index lost 2% before recovering slightly. The ASX 200 lost nearly 3% as banks, miners and oil stocks all tumbled across the board. In South Korea, the Kospi also declined around 1.84%. Mainland Chinese stocks were slightly lower. The Shanghai Composite lost 0.35%, and the Shenzhen Component was down 0.45%.
Oil prices fell about 2% on Monday, hit by investor concerns over the possibility of quicker than expected interest-rate hikes by the U.S. Federal Reserve that took down risk markets such as equities while the dollar rallied.
Brent crude fell $1.62, or 1.8%, to $86.27 a barrel, while U.S. West Texas Intermediate (WTI) crude settled down $1.83, or 2.2%, to $83.31.
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Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed is authors own views. We are not responsible for any losses on account of following the same.