18 February 2022
World Markets – Headlines
- Yen, Swiss franc advance on safe-haven bids as Russia-Ukraine tension rises
- Stocks steady on hopes for diplomacy in Ukraine
- Oil falls on prospect of Iran oil sanctions easing
Currency
Indian Rupee
The Indian rupee is expected to trade little changed to the dollar as Russia-Ukraine tensions prompted a flight to safety and losses for equities.
The rupee is tipped at around 75.08-75.12 at open compared with 75.11 yesterday. Earlier this week, the currency had fallen to a near two-month low of 75.70 but erased those losses on dollar-long stop losses and exporter hedging.
Other Currencies
The safe-haven Japanese yen and Swiss franc climbed to two-week peaks against the U.S. dollar on Thursday, on worries about escalating Russia-Ukraine tensions that could have economic repercussions worldwide.
In afternoon trading, the dollar slid to 114.845 yen , the lowest since early February. It was last down 0.4% at 114.93 yen.
Against the Swiss currency, the greenback fell to 0.9189 francs , the weakest since Feb. 3. The dollar last changed hands at 0.9202 francs, down 0.2%.
The dollar index, a measure of its value against six major currencies, has gained just 0.2% so far this year. Against the yen, however, the greenback has been down 0.2% so far in 2022.
U.S. Treasury 2-year yields, which reflect rate expectations and are correlated with dollar/yen, have surged about 74 basis points .
Equity
India Stock Market
The market is expected to open in the red as trends on the SGX Nifty indicate a negative opening for the broader index with a loss of 64 points.
The BSE Sensex fell 105 points to 57,892, while the Nifty50 declined 18 points to 17,305
Other Stock Markets
Asian markets slipped on Friday and gold stood at an eight-month high after an exchange of fire in eastern Ukraine and renewed U.S. warnings of an imminent Russian invasion had investors looking for safety ahead of the weekend.
MSCI’s broadest index of Asia-Pacific shares outside Japan, was down 0.3% in early trade. Japan’s Nikkei fell 1.4%. Korean shares and Australian shares each fell 1%.
On Wall Street overnight the Dow Jones’ 1.8% fall was its worst session of the year, the S&P 500 fell 2.1% and the Nasdaq dropped 2.9%. Gold shot to an eight-month high of $1,900 an ounce and held its gains.
Oil
Oil prices retreated on Friday after wild swings during the week, as the prospect of extra supply from Iran returning to the market outweighed fears of a possible Russian invasion of Ukraine, which could disrupt supply.
Brent crude futures fell 68 cents, or 0.7%, to $92.29 a barrel, extending a 1.9% drop from the previous session.
U.S. West Texas Intermediate (WTI) crude futures shed 67 cents, or 0.7%, to $91.09 a barrel, after sliding 2% in the previous session.
Economic Events
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