• USDINR traded volatile with comments from Finance Minister Arun Jaitley in his budget speech. Prices ended higher after witnessing intraday decline on fears that the populist Union Budget would put pressure on fiscal deficit amid likely overseas funds outflows from local stocks on account of re-introduction of LTCG tax.
• Finance Minister Arun Jaitley, in the Union Budget FY2018-2019 proposed to levy a 10% tax on gains of over Rs 100,000 from sale of equities after a year while lowering the corporate tax rate to 25% from 30% for companies with an annual turnover of over Rs 2.5 billion.
Yesterday rupee depreciated by 0.68 percent despite dollar index weakening by 0.52 percent as in the recently announced Indian budget government revised its current year fiscal deficit estimates to Rs 4.79 lakh crore as against an earlier estimate of Rs. 3.5 lakh crore. The Indian equity market remained negative during the day with a weakening of around 0.1 percent in Nifty Index.
In the recent US Federal meeting the committee decided to keep interest rates unchanged at 1.5%. Manufacturing PMI from US came in at 59.1 for Jan’18 against market expectations of 58.7. Also, the consumer confidence for Dec’17 beats market expectations by 2.2 mark to come in at 125.4 in Dec’17. However, advance quarterly GDP for Q4 2017 comes in at 2.6% which was lower than market expectations of 3%. Unemployment claims for Jan’18 came in 230,000 which were lower than market expectations of 230,000.
USDINR is expected to depreciate in the coming session
EURUSD appreciated by 0.71 percent however EURINR depreciated by 1.18 percent during the same time frame.
The preliminary quarterly GDP estimates for euro zone come in line with market expectations at 0.6% for Q4 2017. Also, Euro zone CPI comes in line with market expectations at 1.3% for Dec’17. Grand coalitions talks begin in Germany post the adjournment over refugee issue. Euro zone final PMI came in line with market expectations at 59.6 for Jan’18.
EURINR is expected to depreciate in the coming session
GBP appreciated against the US dollar by 0.52 percent yesterday while GBPINR depreciated by 1.2 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. Also, unemployment rate in UK for Dec’17 came in line with market expectations at 4.3%. Manufacturing PMI from UK came lower than market expectations 55.3 against 56.5 in Jan’18.
GBPINR is expected to depreciate in the coming sessionAFTER POST CONTENT
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