On a weekly basis Indian rupee gained 0.36 pct

On a weekly basis Indian rupee gained 0.36 pct

31 Aug 2019 03:28 PM
 

Weekly Synopsis

 

Indian Rupee

On a weekly basis, the Indian rupee  gained 0.36%. The pair USDINR closes at 71.40 against the previous weekly close of 71.66 on August 23rd, 2019 to a greenback. It trades in a weekly range between 72.25 to 71.3725 against the dollar.

India's foreign exchange reserves fell for the second consecutive week to $429.05 billion as of the week ended Aug. 23, down from $430.50 billion at the end of the prior week, according to central bank data released on Friday. This fall was mainly due to decrease in the foreign currency assets, which reduced to $397.13 billion from $398.33 billion in the previous week, the data showed.

India’s economic expansion rate in the fiscal first quarter slowed to an over six-year low under pressure from manufacturing and construction sectors, strengthening bets on further interest rate cuts and adding pressure on New Delhi to ramp up targeted spending to stimulate growth. Asia’s third largest economy grew 5% from a year earlier in April-June, widely missing the median forecast of 5.7% expansion in a poll, and slowing from 5.8% growth in the January-March quarter.

Global Market

The euro reached its weakest level since May 2017 as expectations grew for aggressive easing by the European Central Bank following weak economic data on Thursday. The euro was last 0.57% lower at $1.10. The safe-haven Japanese yen rose 0.24% to 106.24 per dollar. Sterling fell 0.18% to $1.2156 ahead of a crucial period for the British parliament before it is suspended ahead of Britain's scheduled exit from the European Union on Oct. 31. The dollar index rose 0.31%.

U.S. consumer sentiment fell the most in six years. The University of Michigan's final sentiment index fell to 89.8 in August from a previously reported 92.1 and 98.4 in July, data showed Friday. The gauge of current conditions dropped to the lowest since October 2016 , while the expectations index matched January as the weakest since that same period.

Euro-area inflation remained stuck well below the European Central Bank’s goal this month. The 1% rate, in line economists’ estimates, compares with the ECB goal of just under 2%. The core measure, which excludes more volatile elements such as energy, food and tobacco, was even lower, at 0.9%.

British house prices rose in August at the fastest annual pace in three months, mortgage lender Nationwide said on Friday. House prices rose 0.6% year-on-year after a 0.3% rise in July, Nationwide said. On the month, prices were flat.

U.K. consumer confidence matched its lowest in six years in August as a looming no-deal Brexit raised Britons’ concerns about their finances. GfK’s headline confidence measure dropped to minus 14, its joint lowest since July 2013, when the U.K. flirted with recession. The figure equaled consumer confidence at the start of 2019, when then-Prime Minister Theresa May’s Withdrawal Agreement was rejected for the first time.

Contracts to buy previously owned homes unexpectedly fell in July, according to a report on Thursday from the National Association of Realtors that suggested households might be holding back due to heightened concerns about the economy. The NAR's pending home sales index dropped 2.5% last month to 105.6. Economists polled by Reuters had forecast pending home sales would be flat during the month.

A gauge of Britain's economic health slumped to an almost seven-year low in August, dragged down by deepening pessimism among services companies, retailers and consumers who expect inflation to rise sharply as the Brexit crisis escalates. The European Commission said on Thursday its Economic Sentiment Indicator (ESI) for Britain fell to 92.5 from 94.3 in July, its lowest level since September 2012.

The number of Americans filing applications for unemployment benefits rose moderately. Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 215,000 for the week ended Aug. 24, the Labour Department said on Thursday. Data for the prior week was revised to show 2,000 more applications received than previously reported.

Euro zone economic sentiment showed a slight improvement in August, boosted by optimism in the industry and retail sectors and with Spain showing the biggest increase, data showed on Thursday. The European Commission's monthly sentiment showed the overall index for the 19 countries sharing the euro at 103.1 points versus 102.7 in the previous month. Economists poll had forecast 102.3.

U.S. consumer confidence retreated a bit in August as optimism on the present situation improved to its highest since late 2000, offsetting a weakening in the outlook on economic conditions, the Conference Board said on Tuesday. The group's index on consumer confidence slipped to 135.1 in August from an upwardly adjusted 135.8 the month before.

U.S. house prices rose solidly in June, but the pace of appreciation is slowing. The Federal Housing Finance Agency (FHFA) said on Tuesday its house price index increased a seasonally adjusted 4.8% in June from a year ago. That followed a 5.2% gain in May. Prices rose 0.2% on a monthly basis, matching May's increase. They were up 1.0% in the second quarter.

Demand for mortgages in the U.K. jumped last month to the highest since early 2017, according to data published Monday. Loans for house purchases rose almost 11% from a year earlier to a seasonally adjusted 43,342, lobby group U.K. Finance said.

Oil futures fell on Friday, with U.S. crude down nearly 3% ahead of a hurricane near the Florida coast that could dampen demand, but prices were still headed for the biggest weekly increase since early July, boosted by an easing of U.S.-China trade rhetoric. Brent crude futures fell 65 cents, or 1.1%, to settle at $60.43 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled down $1.61, or 2.8%, at $55.10 a barrel.

U.S. stocks were mixed after the close on Friday, as gains in the Basic Materials, Telecoms and Industrials sectors led shares higher while losses in the Consumer Services, Consumer Goods and Technology sectors led shares lower. the Dow Jones Industrial Average rose 41.03 points, or 0.16%, to 26,403.28, the S&P 500 gained 1.88 points, or 0.06%, to 2,926.46 and the Nasdaq Composite dropped 10.51 points, or 0.13%, to 7,962.88.

Local Market

Indian shares ended higher on Friday, recording their first weekly gain in three, as investors cheered signs of progress in the U.S.-China trade dispute, with hopes of additional government stimulus fueling the risk-on sentiment. The broader NSE index ended up 0.68% at 11,023.25, while the benchmark BSE index closed 0.71% higher at 37,332.79. For the week, the NSE index gained 1.79% and the BSE index added 1.72%.

Pharma and fast-moving consumer goods stocks led the gains, with their indexes closing 2.02% and 1.76% higher, respectively. Yes Bank ended 1.11% higher, while Sun Pharma closed up 3.62%. They finished the day as the top gainers among the blue-chip stocks. Among losers, Bharti Infratel ended 3.1% lower.