MORNING MARKET UPDATE

MORNING MARKET UPDATE 11 Apr 2018 12:23

CURRENCY UPDATE

Rates (Ask) USD/INR EUR/USD GBP/USD EUR/INR GBP/INR AUD/USD USD/JPY USD/CHF USD/CAD

65.1300 1.2379 1.4208 80.6280 92.5400 0.7751 107.07 0.9561 1.2604

USDINR Forwards (Ask) APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

11.75 37.00 58.50 81.50 102.50 122.50 145.50 165.50 186.50 205.50 224.00 243.00

1M 2M 3M 6M 1Y

EURO -0.4051 -0.3846 -0.3657 -0.3244 -0.2449

RUPEE -The Indian rupee fell to 65.13/65.14, against 64.9850/64.9950 at the previous close, as crude oil prices jumped to more-than- three-year highs . MAJOR CURRENCIES- The dollar traded near a two-week low against a basket of currencies on Wednesday after Chinese President Xi Jinping's promise to cut import tariffs eased concerns about a U.S.-China trade conflict The dollar index versus a basket of six major peers last stood at 89.588, trading within sight of a low of 89.542 set on Tuesday, its lowest level since March 28. The euro held steady at $1.2360 hovering near Tuesday's high of $1.2378, its strongest level since March 28.. The yen was little changed at 107.05 yen per the U.S. dollar giving back some of the 0.4 percent fall on Tuesday when the Japanese currency slipped broadly. OTHERS - The Australian and New Zealand dollars popped higher on Tuesday as investors wagered conciliatory-sounding comments from Chinese President Xi Jinping could lessen the risk of a trade war with the United States.The Aussie dollar rose around a third of a cent on a firm U.S. dollar to reach $0.7738, its highest in two weeks.The kiwi dollar rose around 0.7 percent to $0.7330, its highest in almost a month.

Technical Strategy EUR/USD - EUR/USD is currently trading at 1.2368. The pair is currently trading above the support level of 1.2350. The RSI is suggesting upward movementc for the pair. For the day, the pair is expected to take support at 1.2350 and the resistance at 1.2400 level. USD/INR - USD/INR is currently trading at 65.1175. The pair is currently trading below the resistance level of 65.2940. The RSI is suggesting upward movment for the pair. For the day the pair may take support at 64.9351 and take resistance at 65.2940 level.

LIBOR USD 1.8944 2.0254 2.3390 2.4675 2.7042

Market Commentary

JPY -0.0500 -0.0360 -0.0372 0.0192 0.1143

USD IRS (Ask) 1Y 2Y 5Y 10Y

2.4340 2.5890 2.7261 2.8090

MIFOR (Mid) / OIS (Mid) MIFOR 1Y 2Y 5Y 10Y

6.405 6.855 6.94

OIS 6.43 6.44 6.79 6.88 Source: Thomson Reuters, IDBI Bank Ltd.

Source: Thomson Reuters, IDBI Bank Ltd.

INTERNATIONAL MARKETS Equities, Commodities and Bonds

Equity Markets (% Change)

SENSEX Nifty Dow Jones Nasdaq FTSE CAC DAX Hang Seng Nikkei

33858.64 10383.50 24408.00 7094.30 7266.75 5307.56 12397.32 30900.24 21687.10

-0.06 -0.18 1.79 2.03 0.99 0.83 1.09 0.56 -0.49

Crude/Bullion

STOCKS(US & Europe) U.S. stocks climbed on Tuesday as investor concerns about rising trade tensions between the United States and China eased after Chinese President Xi Jinping promised to cut import tariffs. The technology sector , which would be particularly exposed to a negative impact from tense trade relations with China, provided the biggest boost to the S&P 500.. The Dow Jones Industrial Average rose 428.9 points, or 1.79 percent, to 24,408, the S&P 500 gained 43.71 points, or 1.67 percent, to 2,656.87 and the Nasdaq Composite added 143.96 points, or 2.07 percent, to 7,094.30. STOCKS(Asia) Asian stocks rose modestly on Wednesday, paring earlier gains as optimism that trade ties between Washington and Beijing were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.35 percent higher. It gained 1.2 percent the previous day after a speech by Chinese President Xi Jinping was seen as striking a more conciliatory stance following a week of tit-for-tat tariff threats between Beijing and Washington. Australian stocks were down 0.25 percent and Japan's Nikkei dipped 0.1 percent. South Korea's KOSPI rose 0.25 percent, Hong Kong's Hang Seng climbed 0.5 percent and Shanghai added 0.2 percent.

(In $)

Crude Oil(WTI)

Gold Silver

65.34 1344.66 16.619

FII/MF Cash

(In cr `) -528.54 7,850.93 17,094.12 1,50,724.68 0

FII Cash Flow MF Cash Flow FII CY 2018 MF CY 2018

Money Rates CALL Rate O/N Mibor LAF (cr `) 91 - T Bill 1y G Sec 5y G Sec 10y G sec

6.00 6.00 9256.00 6.07 6.622 7.323 7.472

INBMK 4Y 7Y 10Y

GOLD Gold prices touched their highest in a week early on Wednesday, as the dollar index hovered near two-week lows and investor jitters about a host of geopolitical tensions stoked demand for the safe-haven metal.Spot gold was on track for a fourth straight session of gains, up 0.1 percent at $1,340.64 an ounce . Prices earlier rose to a one-week high of $1,342.64 an ounce. U.S. gold futures were down 0.1 percent at $1,344 an ounce. BONDS (U.S.) U.S. Treasury yields rose on Tuesday, sparked by a rally in stocks after a friendlier tone from Chinese President Xi Jinping helped ease trade tensions and following data showing a pick-up in U.S. inflation at the producer level. The yield curve continued to flatten on Tuesday as investors priced in interest rates hikes this year. The U.S. 5-year and U.S. 30-year yield curve has flattened to 38.6 basis points , the narrowest gap since late December 2011.n late trading, the U.S. 10-year yields were up slightly at 2.802 percent , from 2.789 percent late on Monday. U.S. 30-year yields rose to 3.023 percent from Monday's 3.017 percent.

Indian Money Market 7.283 7.625 7.472

US Treasury 3Y 5Y 7Y 10Y

OIL Oil prices on Wednesday eased away from 2014 highs reached the previous session as escalating Middle East tensions were offset by increasing inventories and production in the United States. Brent crude futures rose to $70.78 per barrel down 26 cents, or 0.4 percent, from their last close. Brent surged more than 3 percent on Tuesday to hit its highest level since late 2014, at $71.34 a barrel. U.S. WTI crude futures were at $65.38 a barrel, down 13 cents, or 0.2 percent from their last settlement.. Markets have been tense on escalating tensions in the Middle East.

2.4457 2.6214 2.7389 2.7954

CALL- India’s one-day call rate was trading at 5.95%/6.00%, against 5.85%/5.90% at its previous close.. BONDS- India’s benchmark 7.17% bond maturing in 2028 fell to 98.01 rupees, yielding 7.46%, against 98.55 rupees and 7.38% yield at previous close, as sharp jump in crude oil prices raised concerns that inflation may gain pace in coming months. IRS- India’s one-year swap rate rose two basis points to 6.41% from 6.39% at previous close, while the benchmark five-year swap rate gained three basis points to 6.77%, against 6.74% earlier.

ECONOMIC INDICATORS Economic data/Indicators ACTUAL 3.00% 1.00%

USD Producer Price Index Final Demand (YoY) (Mar) USD Wholesale Inventories (MoM) (Feb F)

EXPECTED

PREVIOUS

2.90% 0.80%

2.80% 1.10%

U.S. producer prices increased more than expected in March, boosted by a rise in the cost of services such as healthcare and airline fees, pointing to a steady buildup of wholesale inflation pressures.the year-on-year increase in the PPI to 3.0 percent from 2.8 percent in February. Economists polled by Reuters had forecast the PPI gaining 0.1 percent last month and advancing 2.9 percent from a year ago.

Upcoming Economic Data/Events ACTUAL USD Consumer Price Index (YoY) (Mar) GBP Manufacturing Production (YoY) (Feb)

EXPECTED

PREVIOUS

2.40% 3.30%

2.20% 2.70%

Currency Futures & Options Instrument* Futures Options Futures Options Futures Options Futures Options Chandan Mishra

Underlying USDINR USDINR GBPINR GBPINR EURINR EURINR JPYINR JPYINR Total

Volume 6,81,352 7,58,049 39,626 1,790 38,970 1,510 12,259 3 15,33,559

Value (in cr) 4,442.46 4,940.61 366.48 16.44 314.41 12.15 74.56 0.02 10,167.13

OI 21,92,662 21,31,773 1,11,788 4,165 1,64,442 16,719 28,202 3,220 46,52,971

No. of trades 21,006 15,148 4,241 85 4,428 158 1,200 3 46,269

Volume 6,18,005 32,750 32,438 11,638

Value (in cr) 4,027.90 262.80 299.09 70.84

OI 14,54,488 1,15,041 79,008 24,102

No. of trades 17,437 3,609 3,411 1,103

[email protected]

91-22-66263525

Contract* USDINR 250418 EURINR 250418 GBPINR 250418 JPYINR 250418

LTP 65.2150 80.7125 92.58 60.95

Disclaimer : This report/ material has been prepared by IDBI Bank Limited (“IDBI Bank”) and is only meant for the recipient for use as intended and not for circulation. This

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