Jun 15 2018

Indian Rupee Logs Worst Week in Four Weeks

 Weekly Synopsis 

Date:- 15th June 2018 

Markets from 11th June 2018 to 15th June 2018:- 

 

Indian Rupee:- 

  • The Indian rupee logged its biggest weekly decline in four weeks against the U.S. currency, as the dollar index advanced to a seven-month high on the European Central Bank’s cautious stance. On a weekly basis, the rupee fell 0.76%, falling for second consecutive week and its biggest decline since the week ended May 18. A major contributor to this week’s decline was contributed by today’s 0.6% fall.
  • The rupee closes on Friday at 68.01 against the previous weekly close of 67.50 on June 08th, 2018 to a greenback. It trades in a weekly range between 67.2825 to 68.03 against the greenback.
  • India’s foreign exchange reserves rose to $413.11 billion as of June 8, compared with $412.23 billion a week earlier.
  • India’s merchandise exports jumped 20.18% on year to $28.86 billion in May, while trade deficit widened to a four-month high of $14.62 billion widened for second straight month from $13.72 billion in April. Imports were up 14.85% on year to 43.48 billion. 

 

Global Market:- 

  • The dollar index was last trading little changed after rising as much as 0.38% to 95.13 today, its highest since Nov 2017. It rose 1.1%, overnight on upbeat U.S. economic data and as the euro plunged against the dollar yesterday as the ECB signalled it will probably keep interest rates at the current level well into the next year.
  • Earlier this week, eight out of 13 Fed members projected the interest rates to increase two more times by the end of this year against earlier forecast of one hike on upbeat U.S. economic data, including rise in inflation. The Fed raised interest rates by a quarter percentage points for a second time this year, an outcome that was well discounted by the markets.
  • S. retail sales rose 0.8% month-on-month in May, double of what economists had expected, data released yesterday showed. Jobless claims for the week ended Jun. 9 fell to 218,000 as against the 224,000.
  • S. inflation accelerated more than expected in May, underlining the case for a faster pace of monetary tightening by the Federal Reserve. Consumer price inflation rose by an annualized 2.8% in May up from 2.5% in the previous month. The consensus forecast was for a reading of 2.7%.
  • German economic sentiment fell to a negative 16.4 this month from minus 8.2 in May. That was compared to the consensus forecast for a reading of minus 14.6.
  • The euro bounced on Friday after suffering its worst day in nearly two years when the European Central Bank signalled it would keep interest rates at record lows into the summer of 2019. The ECB’s crisis-era stimulus of massive bond purchases aimed at boosting the euro zone economy will end this year.
  • Output in the UK manufacturing sector fell 1.4% in April from the prior month, the consensus expectation had been for a gain of 0.3%. Industrial production fell 0.8% in April, compared to a gain of 0.1% in the previous month. Analysts had forecast a 0.2% advance.
  • Unemployment in the UK remained steady, while wage growth slowed slightly in the three months to April. The number of people in employment in the UK rose by 146,000 in the three months to May, compared to forecasts for an increase of 124,000.The claimant count, which measures the change in the number of people claiming unemployment benefits fell by 7,700 over the period from 28,200.
  • European markets are mixed. The CAC 40 is higher by 0.01%, while the FTSE 100 is leading the DAX lower. They are down 0.92% and 0.43%. 

 

Local Market:- 

  • The S&P BSE Sensex recouped losses of over 200 points in trade on Friday and closed in green after two straight days of losses. The Nifty50 held on to its crucial support placed at 10,800 for the fourth straight day in a row.
  • The BSE Sensex gained 22.32 points at 35,622.14 and the NSE Nifty rose 9.70 points to 10,817.70.
  • Both indexes posted their fourth straight weekly gain, with the NSE index climbing 0.46 percent and BSE rising 0.50 percent for the week.