Rupee has hit the 80 mark against the dollar for the first time ever. The currency has been in a free fall and depreciated for the eighth consecutive session against the backdrop of foreign fund outflows, widening trade and current account deficits. Safe-haven demand for US dollars on rising global recession risks has also contributed to the weakness. The steep fall in the domestic currency will lead to costlier imports and even more expensive overseas education and travel. Watch the video to find out why you should care about a depreciating rupee.
Rupee slides beyond 78 against the US Dollar for the first time. 10-year bond yields jump to over 3-year highs. What to expect from the CPI data slated for later today? Moneycontrol's Karunya Rao and Ravi Krishnan decode all this and more.
Spot gold was down 0.4% to $1,855.72 per ounce by 0351 GMT, extending falls into a fourth session. Earlier in the session, it hit its lowest since July 22 at $1,853.32.
Gold and silver prices remain firm and further stimulus talks from developed economies and weakness in dollar index will continue to support prices.
Spot gold was up 0.9% at $1,857.86 per ounce by 0232 GMT, after hitting its highest since September 2011 at $1,865.35 earlier in the session. U.S. gold futures rose 0.8% to $1,858.20.
In the day trade, the rupee plunged to a record low of 70.90 to the dollar as firming oil prices fanned fears of widening current account deficit.
The happenings in the United States administration had its impact on the United States Dollar.
This is its highest closing since August 11, 2015, when it had ended at 64.19 against the greenback. Speculative traders and exporters offloaded their long dollar bets, spooked by launch of US air strikes against Syria.
While the global scenarios is looking up, certain hurdles like the upcoming elections in France in next 2-3 months will be in focus. The upcoming rate hike by the US Federal Reserve next week is already factored in, said Andrew Holland, Chief Executive Officer at Avendus Capital Alternate Strategies.
The retreat in the US dollar and 10-year treasury yields from the peaks has helped emerging markets (EMs), according to Geoff Lewis of Manulife Asset Management. He said that emerging markets are also drawing strengths from better corporate earnings.
The strength of the US dollar will decide the fate of the emerging markets (EMs), said Sanjeev Prasad, Senior ED & Co-Head at Kotak Institutional Equities.
The ongoing stock market rally is driven by fund flows but has little support from fundamentals, Pramod Gubbi, Head of Equities at Ambit Capital, told CNBC-TV18 Tuesday.
Thakur says the company has witnessed an expansion in margins every quarter and is confident of reaching an exit margin of 17.5 percent by the end of current fiscal.
Speaking to CNBC former RBI Governor Raghuram Rajan raised concern over the protectionist policies proposed by US President-elect Donald Trump and said there is a significant risk of a trade war between US and China.
Speaking to CNBC-TV18 Caesar Maasry, Head of emerging market equity strategy at Goldman Sachs said that the underperformance of emerging markets is closer to its end and expects them to do well in the second half of 2017.
Speaking to CNBC-TV18, Dhiraj Sachdev said that the current market decline is a temporary window to make an entry and sees sustainable growth in the agrochemical sector despite temporary disruptions.
The biggest worry now for the US market is that the price action and underlying fundamentals are getting a bit out of line with one another, says Jan Dehn of Ashmore Investment Management in an interview to CNBC-TV18.
With bond yields treading higher, US dollar going stronger and US equities hitting all-time highs, gold look technically weak at least in the short term says Adrian Ash of Bullion Vault.
Prospects of a stronger US dollar and uncertainty on President elect Trump‘s trade policies is currently on top of investors‘ mind more than US Fed Reserve‘s interest rate move, says Adrian Mowat of JPMorgan. The rhetoric between China and US is also deteriorating, he notes.
Surendra Goyal said that this depreciation in rupee will spook foreign institutional investors (FIIs).
Headwinds in the IT sector remains high but the valuations at which IT stocks are trading now looks attractive and Ashburton looks at the sector with a view of topping up its holdings, Jonathan Schiessl said.
Qi Gao, FX Strategist at Scotiabank tells CNBC-TV18 the strengthening of US dollar versus emerging market currencies is due to Trump's pro-growth stance. Trump's promise to accelerate fiscal spending on infrastructure has raised inflation expectations which means possibility of rate hikes, Gao says.
In an interview with CNBC-TV18, Ananth Narayan of Standard Chartered Bank said that fall in Chinese Yuan and the appreciation of the US dollar index won't impact the Indian rupee much as the Reserve Bank of India (RBI) has ample dollar reserves to tackle any volatlity.
Anant Narayan of Standard Chartered Bank, said that the current trend of risk-on play should continue. â€œWe are seeing inflows coming through,â€ he said, adding that FCNR repayment ought to be contained. He believes the RBI will continue to mop up dollars.
The drop in Nigeria‘s oil production due to resurgence of militant activity in the southerly Delta has a significant impact on the global front, says Miswin Mahesh, Energy Analyst at Barclays.