Apr 29 2017

The Indian Rupee Posts Weekly Rise For The First Time In Three Weeks

 Weekly Synopsis

 

Date:- 29th April 2017

 

Markets from 24th April 2017 to 28th April 2017:-

 

Indian Rupee:-

 

  • India’s central bank intervenes in the foreign exchange market to limit the rupee’s volatility. The RBI bought a net $776 million from the spot foreign exchange market in January-February, compared with a net sale of $3.37 billion in same period in 2016.

 

  • The rupee settled at 64.24 per dollar on Friday against 64.15 at previous close. The local unit posted its biggest weekly gain since the week ending Apr. 7.

 

  • India’s foreign exchange reserves rose for a second week to $371.14 billion as of Apr. 21, the highest level since Sep. 30, 2016, from $369.89 billion in the previous week, as per RBI release on Friday. The rise was driven by an increase in foreign currency assets to $347.49 billion from $346.25 billion in the previous week, according to data from the Reserve Bank of India. Forex reserves had last hit a record high of $371.99 billion in the week ended Sep. 30.

 

Global Market:-

 

  • The dollar retreated further against the basket of major currencies in the week ending April 28 marking the third straight week of losses.  The dollar posted weekly losses of 0.98% after as the index closed the week at 98.90.

 

  • China’s main stock indexes were little changed on Friday but posted worst month of the year on fears that regulators will step up their latest crackdown on riskier types of financing and speculation, and on lingering worries over economic growth. The blue-chip CSI300 index fell 0.2 percent, to 3,439.75 points, while the Shanghai Composite Index  edged up 0.1 percent to 3,154.66 points.

 

  • European shares eased on Friday as investors took profits, but sealed their strongest week since December as political worries subsided and brokers forecast strong earnings growth would underpin valuations.

 

  • The STOXX 600 index closed 0.2 percent lower at 387.09, adding to the previous session’s losses, while Britain’s FTSE  was down 0.3 percent and France’s CAC 40 was flat. The pan-European index ended the week up 2.5 percent – its strongest week since December – as fresh money poured into the region’s equities on the back of the market-friendly outcome of the first round of France’s presidential election. It sealed a third straight month of gains, and was just off fresh 20-month highs hit on Wednesday.

 

  • The U.S. economy grew at its weakest pace in three years in the first quarter as consumer spending almost stalled, but a surge in business investment and wage growth suggested activity would regain momentum as the year progresses. Gross domestic product increased at a 0.7 percent annual rate also as the government further cut defence spending and businesses spent less on inventories, the Commerce Department said on Friday in its advance estimate. That was the weakest performance since the first quarter of 2014.

 

  • Stocks edged lower on Wall Street on Friday after data showing the U.S. economy grew at its weakest pace in three years in the first quarter gave traders a reason to cash recent gains. Major indexes closed up for April, however, with the Nasdaq up for six consecutive months, the longest streak in nearly four years. The Dow Jones Industrial Average  fell 40.82 points, or 0.19 percent, to 20,940.51, the S&P 500 lost 4.57 points, or 0.19 percent, to 2,384.2 and the Nasdaq Composite  dipped 1.33 points, or 0.02 percent, to 6,047.61.

Local Market:-

 

  • Indian shares retreated further on Friday from record highs hit this week as investors booked profits ahead of a long weekend, but still were on track to post their biggest weekly gain in six.

 

  • The benchmark BSE index and the broader NSE index were headed for a near 2 percent gain this week, their best performance since mid-March as hopes of improving corporate earnings and accelerating economic growth lifted the indexes to all time highs.

 

  • The broader NSE index  was down 0.41 percent at 9,304.05 by, while the benchmark BSE index .was 0.37 percent lower at 29,918.40.