11/10/2018

Major developments:

Rupee is at 74.39. Global Equities melted y’day with US DOW leading the decline with a fall of 3.15%. There is no single factor. However, confluence of factors like rising US Yields, trade war with China, lower German growth forecast , emerging market vulnerability due to Oil price rise combined to trigger heavy selling in Global asset markets. US President blamed Fed’s policy for y’day’s fall and said that Fed is crazy. US inflation data is to be released later tonight. Higher CPI data may create more problems for Global yields and Equity markets. Crude prices also declined in tandem with fall in Equity markets.

Indian CPI and IIP data are other key data events for this week.

-INR is at 74.39. Y’day’s close was 74.20.

-Indian Equity indices decline steeply.

-Indian 10 year G-SEC yield is at 8.00%.

-USDINR 1 yr fwd premia is at 4.30%.

USDINR @ 74.39, EUR/USD 1.1560, GBP/USD @ 1.3220, USD/JPY @ 112.17, EUR/INR @ 85.99, GBP/INR @ 98.34, JPY/INR @ 66.30.

Gold@1193, WTI Crude @ 71.94, Nifty @ 10196 (-264), 10 Year G-SEC @ 8.00.