On a weekly basis Indian Rupee appreciated by 1.50 Pct

On a weekly basis Indian Rupee appreciated by 1.50 Pct

16 Mar 2019 03:57 PM

Weekly Synopsis

Date:- 16th March 2019

Markets from 11th March 2019 to 15th March 2019:-

Indian Rupee:-

The rupee ended at a fresh seven-month high against the US. dollar, on continuous foreign fund inflows into local equity and bond markets. However, sporadic intervention by the central bank at various levels slowed the unit’s appreciation. On a weekly basis, Rupee appreciated by 1.50%. The local unit settled at 69.09 to a dollar on Friday against 70.1450 at previous close on 08 Mar 2019. The pair USDINR trades in a weekly range between 70.0350 to 69.03.

India's foreign exchange reserves rose to $402.04 billion as of March 8, compared with $401.78 billion a week earlier, the Reserve Bank of India said on Friday. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves.

India's trade deficit stood at $9.60 billion In February, the lowest since September 2017, tracking a sharp monthly as well as on-year fall in oil imports, government data showed yesterday. The trade gap was at $14.73 billion in January and $12.30 billion in the year-ago period.

India's annual retail inflation picked up in February to 2.57 percent, after easing to a downwardly revised 19-month low of 1.97 percent in January, government data showed on Tuesday. Analysts poll had forecast February's annual increase in the consumer price index at 2.43 percent.

India's industrial output in January rose 1.7 percent from a year earlier, lower than forecast, government data showed on Tuesday. A poll of economists had predicted a growth of 2.0 percent for January. January's growth was much slower than the upwardly revised 2.6 percent year-on-year increase in December, the data showed.

Global Market:-

The U.S. dollar fell against its rivals Friday and posted a weekly loss after anemic U.S data added to concerns of an economic slowdown. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.22% to 96.56.

U.S. industrial production rebounded only weakly in February, stoking concerns that the slowdown at the end of last year could extend well into 2019. Output inched up 0.1% last month after declining 0.4% in January, according to Federal Reserve data released Friday. Economists had forecast an increase of 0.4%.

Inflation in the euro zone accelerated modestly in February but stayed well below the European Central Bank's medium-term target, according to final data for the month, released on Friday. The consumer price index rose 1.5% in February from the same month a year earlier, the bloc’s statistics agency Eurostat said.

Sales of new homes fell to a three-month low in January, driven by a decline in the Midwest as the housing sector continued to deteriorate. Sales U.S. single-family homes fell 6.9% to a seasonally adjusted annual rate of 607,000 units last month from a revised increase of 652,000 units in December, the Commerce Department said on Thursday.

The number of people who filed for first-time unemployment assistance in the U.S. rose by 6,000 last week to a four-week high of 229,000, in a possible sign that the country's red-hot labor market may be cooling. Economists had expected initial claims to rise by only 2,000 to 225,000.

U.S. producer prices rose only marginally in February, adding to evidence of a subdued start to the year for the economy. The Labor Department said its producer price index (PPI) increased 0.1% last month, while the core PPI, which excludes food and energy costs, also rose 0.1%.

Orders for durable goods rose unexpectedly in January, thanks largely to a 15.9% jump in orders for aircraft, according to data released on Wednesday. Overall durable-goods orders increased 0.4% last month, the Commerce Department said. Economists had forecast a drop of 0.5%.

Euro zone industrial production was stronger than expected in January, data showed on Wednesday. The European Union's statistics office Eurostat said production in the 19 countries sharing the euro rose 1.4 percent month-on-month in January for a 1.1 percent year-on-year fall.

Growth in U.S. consumer prices rose only marginally in February, further supporting the case for the Federal Reserve to hold off from further increases in interest rates in the near term. The consumer price index rose 1.5% from a year ago, while core inflation, that excludes volatile food and energy costs, increased 2.1%. That compared to consensus forecasts for them to remain stable at 1.6% and 2.2%, respectively.

The rate of economic growth in the U.K. picked up in the last three months, as activity rebounded in January after a weak end to the year. Gross domestic product grew 0.5% in the three months to January, the Office for National Statistics reported on Tuesday, a slight uptick from the 0.4% expansion seen in the three months to December, and above analysts' forecasts for an increase of 0.2%.

U.S. retail sales recovered in January, coming off their steepest decline in nine years. The Commerce Department said that retail sales rose 0.2% in January, above analysts’ expectations for a flat reading.

Prime Minister Theresa May's deputy warned lawmakers that unless they approved her Brexit divorce deal after two crushing defeats, Britain's exit from the EU could face a long delay.

Sterling rose 0.35 percent to $1.3285 and the dollar index . fell 0.2 percent. The euro gained 0.13 percent to $1.1317 while the Japanese yen strengthened 0.18 percent versus the greenback at 111.53 per dollar.

U.S. stocks were higher after the close on Friday, as gains in the Telecoms, Technology and Consumer Services sectors led shares higher. The Dow Jones Industrial Average rose 139.07 points, or 0.54 percent, to 25,849.01. The S&P 500 gained 13.99 points, or 0.50 percent, to 2,822.47 and the Nasdaq Composite added 57.62 points, or 0.76 percent, to 7,688.53.

European markets finished broadly higher on Friday with shares in France leading the region. The CAC 40 is up 1.04% while Germany's DAX is up 0.85% and London's FTSE 100 is up 0.60%.

Local Market:-

Indian shares edged higher for a fifth consecutive session on Friday, marking their best week in over three months, as investors expect a second term for the incumbent government.

The benchmark BSE index closed up 0.71 percent at 38,024.32, ending the week 3.7 percent higher. The broader NSE index advanced 0.74 percent to 11,426.85, gaining 3.5 percent for the week. Both indexes posted their best weekly gain since Nov. 30.