Yesterday rupee appreciated by 0.16 percent as dollar index weakened by 1.02 percent on account of IMF projection of Indian GDP to grow at 7.4% for 2018 making it the fastest growing major economy. Also, the government decided to reduce its borrowing from Rs. 50,000 cr to Rs. 20,000 cr for the current fiscal year.
The factors driving dollar index down were worries that Donald Trump may end NAFTA trade agreement with its counterparties. Also, the US government had went on shutdown from Friday midnight after senate negotiators had failed to reach on a agreement to keep funded over amid a dispute over immigration and border issue. However, the shutdown got ended today as the senate voted for a temporary funding bill. The flash manufacturing PMI from US came in line with market expectations of 55.5 in Dec’17 and the services PMI came lower than estimates at 53.3 as compared to 54.5 in Dec’17.
USDINR is expected to appreciate in the coming session
EURUSD appreciated by 0.89 percent while EURINR depreciated by 0.68 percent during the day.
ECB spokesperson commented on cutting down the 2.55 Euro monetary stimulus program in 2018 if inflation and growth persists in the Euro area also ECB will be holding their meeting today to discuss the future policy stance. Also, flash services PMI came in better than market estimates at 57.6 in Dec’17 as compared to 56.5. However, manufacturing PMI came in at 57.6 which were lower than market estimates of 60.4 for Dec’17.
EURINR is expected to depreciate in the coming session
GBP appreciated against the US dollar by 1.73 percent during the day. Also, GBPINR depreciated by 1.57 percent during the same time period.
Public sector borrowing for UK came in at 1.02 billion pound which less than market estimates of around 4.2 billion pounds for Dec’17. However, average earnings index for Dec’17 came in line with market expectations at 2.5% in Dec’17.
GBPINR is expected to depreciate in the coming sessionAFTER POST CONTENT
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