Sep 09 2017

Rupee gained 0.4% on a weekly basis; Dollar hits low note while Euro shines

 Weekly Synopsis

 

Date:- 09th September 2017

 

Markets from 04th September 2017 to 08th September 2017:-

 

Indian Rupee:-

 

  • Indian rupee rose yesterday against the dollar for the week, helped largely by Friday’s largest single-session gain in over a month, as the greenback weakened after the European Central Bank hinted at a decision on scaling back its monetary stimulus programme in October. For the week, the rupee gained 0.4% against the greenback, its largest weekly rise since week ended Aug. 4. The rupee closes on Friday at 63.78 against the previous weekly close of 64.02 on September 01st, 2017 to a greenback. It trades in a weekly range between 64.2625 to 63.78 against the greenback.

 

  • India’s foreign exchange reserves rose for a second consecutive week to another record high of $398.12 billion as of Sep.1, from $394.55 billion in the previous week, the central bank said yesterday. The increase was driven by a rise in foreign currency assets to $373.64 billion from $370.83 billion in the previous week, according to the data from the Reserve Bank of India.

 

Global Market:-

 

  • The U.S. dollar hit a more than 2-1/2-year low against a basket of major rivals on Friday on reduced expectations for another Federal Reserve rate increase this year, while the euro hit multi-year highs in the wake of a European Central Bank meeting.

 

  • New York Fed President William Dudley, while saying in a speech Thursday that the central bank should continue gradually raising U.S. interest rates, sounded slightly less confident than in his previous hawkish comments. The tone reduced demand for the dollar and helped knock the greenback to a roughly 10-month low against the yen to 107.33 yen. Concerns over the impending short-term impact of Hurricane Irma on the U.S. economy also weighed on the dollar.  The dollar was last set to drop 2.2 percent against the yen for the week to mark its biggest weekly percentage decline in about 13 months.

 

  • The euro rose as much as 0.6 percent to its highest since January 2015 of $1.2092. While the euro pared most of its gains, leaving it roughly flat against the dollar at $1.2027, it was on track for a weekly gain of 1.4 percent, putting it up more than 14 percent this year against the dollar.

 

  • ECB President Mario Draghi’s comments Thursday did little to deter euro bulls, and a Reuters report that central bank officials were in broad agreement that their next step would be to reduce their bond purchases also supported the currency.

 

  • S. shares were mixed, with the S&P ending slightly lower as investors braced for Irma and fretted that Pyongyang could launch another missile test on Saturday, North Korea’s founding day, keeping risk appetite in check going into the weekend.  The Dow Jones Industrial Average rose 13.01 points, or 0.06 percent, to end at 21,797.79, the S&P 500 lost 3.67 points, or 0.15 percent, to 2,461.43 and the Nasdaq Composite dropped 37.68 points, or 0.59 percent, to 6,360.19.

 

  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.06%, while London’s FTSE 100 was off 0.26%. Shares in France were unchanged with the CAC 40 at 5,113.49.

 

  • S. crude prices tumbled down more than 3 percent on Friday worries that energy demand would be hit hard as Hurricane Irma, one of the most powerful storms in a century, headed toward Florida and the Southeast. Irma, the second major hurricane to approach the United States in two weeks was forecast to slam southern Florida on Sunday. It has already killed 14 and destroyed islands in the Caribbean, with Hurricane Jose heading for the Caribbean Leeward islands, close on the heels of Irma.

 

Local Market:-

 

  • Indian indexes ended slightly higher on Friday led by shares of some metals firms as commodity prices rallied, but the unease in global markets about North Korea put a lid on gains.

 

  • The BSE index  ended 0.08 percent higher at 31,687.52, while the broader NSE index  closed 0.05 percent up to 9,934.80.

 

  • Both indexes, however, ended the week lower, snapping a third weekly run of gains. For the week, the NSE and BSE ended 0.40 percent and 0.64 percent lower respectively.