Market Wrap




Market Wrap

Dollar closed at 64.6275 against its opening of 64.4500. Dollar in the offshore market pared losses during European trades tracking the movement in spot pair while investors await the release of US GDP data. The spot pair pared losses on buying by nationalised banks including State Bank of India amid month-end dollar demand by oil importers. Dollar snapped two-day rise as dollar lost grounds against other major peers after weaker than expected US economic data and expectations of monetary tightening by other major central banks lowered the demand for dollar. In overseas, dollar continued to drop against basket of major currencies after disappointing US housing data. Euro continues its upward journey and pound surged higher on BOE comment, that UK economy is well above confidence level and future tightening is an open option.

The dollar retreated against its major peers, falling to near nine-month low tracking the surge in euro after the European Central Bank President Mario Draghi hinted at removal of stimulus. Also, investors turned sceptical regarding the health of the world's largest economy after mixed US economic data.  On the US economic front, trade deficit narrowed in the month of May, reported the US Census Bureau in its advanced report on international trade said Wednesday. The international trade deficit was $65.9 billion in May, down $1.2 billion from $67.1 billion in April.
 
On the global front Asian shares traded higher, taking cues from a stronger finish in US markets, with traders expected to digest comments from top central bankers overnight.

BSE Sensex closed higher by 23 points, to 30,858, while the Nifty 50 rose 13 points to 9,504.

INTERNATIONAL

 

China needs to strike a balance between deleveraging and maintaining adequate support for some sectors of the economy, a senior International Monetary Fund official said on Thursday.
 

Prime Minister Theresa May faces a major test of whether she can muster enough lawmakers to rule on Thursday when her legislative plan goes to a vote in parliament amid bids by opponents to peel off her supporters with an array of amendments.

 

Oil prices rose to a two-week high in European trade , extending gains into a sixth session after U.S. government data revealed the biggest weekly decline in domestic crude production in almost a year.

 

Gold prices edged higher in European trade , as the dollar extended its recent decline to the lowest level since October, boosting the appeal of the yellow metal.