Jun 24 2017

Indian Rupee posts 2nd weekly fall

 Weekly Synopsis


Date:- 24th June 2017


Markets from 19th June 2017 to 23rd June 2017:-


Indian Rupee:-


  • The Indian rupee fell for a second straight week against the dollar. For the week, the currency fell 0.14%. The rupee closes on Friday at 64.53 against the previous weekly close of 64.43 on June 16th, 2017 to a greenback. It trades in a weekly range between 64.6750 to 64.3150 against the greenback.


  • India’s foreign exchange reserves rose to $381.96 billion as of Jun. 16 from $381.16 billion in the previous week, the central bank said yesterday. The fall was driven by an increase in foreign currency assets to $358.08 billion from $357.28 billion the previous week, according to data from the Reserve Bank of India.


  • India’s Monetary Policy Committee needs to avoid premature policy action amid an uncertain near-term inflation outlook, the head of the panel and central bank Governor Urjit Patel said in the minutes of the June meeting released on Wednesday 21 June 2017.


  • The Reserve Bank of India released the minutes of the six-member MPC’s policy meeting held on Jun. 6-7, in which the key interest rate was left unchanged at 6.25%, with five votes from six members in favour of a status quo. MPC Member Ravindra H. Dholakia had proposed a 50-basis-point reduction in the key policy rate, citing lower-than-expected inflation, according to the minutes.


Global Market:-


  • The dollar index fell 0.34 percent, with the euro up 0.41 percent to $1.1196. The dollar had hit a one-month high on Tuesday following comments with a hawkish tone from Fed officials, including New York Fed President William Dudley and Boston Fed President Eric Rosengren. But it has been stuck in a tight range since and is up slightly on the week. Earlier on Friday, St. Louis Fed President James Bullard said the central bank should wait on any further rate increases until inflation is reliably heading to the Fed’s 2-percent target. Cleveland Fed President Loretta Mester said failure to hike U.S. rates could mean missing inflation and employment goals that could cause a recession.


  • New home sales, which make up about 10% of all U.S. home sales, increased 2.9% to a seasonally adjusted rate of 610,000 units last month, The Commerce Department said on Friday. April’s sales pace was also revised sharply higher to 593,000 units from 569,000 units. Analysts had forecast U.S. existing home sales rising 5.4% to a pace of 597,000 units last month.


  • Oil futures edged higher on Friday with a lift from a weaker dollar, but finished a fifth straight week lower as OPEC-led production cuts have failed to substantially reduce a global crude glut. Brent futures settled up 32 cents, or 0.7 percent, to $45.54 a barrel. U.S. West Texas Intermediate crude (WTI) ended up 27 cents, or 0.6 percent, at $43.01 per barrel.  For the week, both benchmarks lost 3.9 percent, and oil currently sits just off 10-month lows, beset by ongoing worries about rising production. The five-week slide represents the longest stretch of weekly declines for the front-month contracts since August 2015.


  • S. stocks were mixed after the close on Friday, as gains in the Oil & Gas, Technology and Industrials sectors led shares higher while losses in the Utilities, Telecoms and Financials sectors led shares lower. The Dow Jones Industrial Average fell 2.53 points, or 0.01 percent, to 21,394.76, the S&P 500 gained 3.8 points, or 0.16 percent, to 2,438.3 and the Nasdaq Composite added 28.57 points, or 0.46 percent, to 6,265.25.


  • European markets finished lower on Friday with shares in Germany leading the region. The DAX is down 0.47% while France’s CAC 40 is off 0.30% and London’s FTSE 100 is lower by 0.20%.


Local Market:-


  • India’s NSE index ended lower for a fourth straight session on Friday, its longest losing streak since mid-April, as investors booked profits in financials such as State Bank of India and Kotak Mahindra Bank Ltd.


  • The broader NSE index closed down 0.57 percent at 9,574.95, its lowest close since May 25. The index fell 0.14 percent for the week.


  • The benchmark BSE index was 0.49 percent lower at 31,138.21 but posted a 0.26 percent gain for the week.