Jun 30 2018

On a weekly basis Rupee ended 0.92% lower

 Weekly Synopsis

Date:- 30th June 2018

Markets from 25th June 2018 to 29th June 2018:-

Indian Rupee:-

  • On a weekly basis, the rupee ended down 0.92%. The rupee closes yesterday at 68.4650 against the previous weekly close of 67.8350 on December 29th, 2017 to a greenback. It trades in a weekly range between 69.09 to 67.90 against the greenback.
  • The Indian rupee suffered its largest quarterly loss in almost five years against the dollar, as concerns over the Federal Reserve’s monetary tightening, surging oil prices and escalating trade tensions prompted foreign investors to withdraw money at the fastest pace in 18 months.
  • The Indian currency lost 5% against the greenback in the April-June period, the biggest quarterly fall since September 2013. It ended the quarter at 68.47 against 65.17 as at the end of March quarter. This quarter witnessed the rupee falling to a record-low 69.10 against the dollar, topping its previous low of 68.87 recorded in November 2016. The USD/INR pair traded in a wide four rupees range this quarter, between 64.85 to 69.10.
  • India’s foreign exchange reserves fell for a second week to $407.82 billion as of the week ended Jun. 22, from $410.07 billion in the previous week, the central bank said yesterday. Friday’s decrease was due to a fall in foreign currency assets to $382.50 billion from $385.33 billion in the previous week, according to data from the Reserve Bank of India. Foreign exchange reserves had jumped to a record high of $426.08 billion as of the week ended Apr. 13.
  • India reported on Friday a fiscal deficit of 3.45 trillion rupees ($50.37 billion) during April-May period, or 55.3 percent of the budgeted target for the current fiscal year compared with 68.3 percent a year ago.

Global Market:-

  • The U.S. dollar was under pressure Friday amid a rampant euro as leaders of Europe reached an agreement on a migration deal, easing pressure on German Chancellor Angela Merkel. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.71% to 94.33 and was last seen at 94.49.
  • A key gauge of U.S. consumer confidence was revised lower in June, according to a survey released on Friday. The University of Michigan’s consumer confidence index was revised down to 98.2 from 99.3.
  • The U.S. economy slowed more than previously estimated in the first quarter amid the weakest performance in consumer spending in nearly five years. Gross domestic product increased at a 2 percent annual rate in the January-March period, the Commerce Department said on Thursday in its third estimate of first-quarter GDP, instead of the 2.2 percent pace it reported last month.
  • The number of people who filed for unemployment assistance in the U.S. last week rose more than than expected, according to official data released on Thursday. The number of individuals filing for initial jobless benefits increased by 9,000 to 227,000 the Labor Department said.
  • Sales of new U.S. single-family homes rose in May, according to data released on Monday. The Commerce Department said new home sales increased 6.7% to a seasonally adjusted annual rate of 689,000 units last month.
  • European Union member states Friday struck a migration deal, agreeing on several measures to tackle the migrant crises in the EU including stepping up border security and setting up holding centers to handle asylum seekers. The deal was cheered by traders as it eased political uncertainty within the bloc, sending the EUR/USD sharply higher, to $1.1683, up 0.95%.
  • Euro zone inflation hit 2 percent for the first time in more than a year in June due to surging energy and food costs. Inflation in the 19 countries sharing the euro rose to 2.0 percent from 1.9 percent in May, EU statistics office Eurostat said on Friday.
  • GBP/USD rallied 0.89% to $1.3194 after the UK economy grew faster-than-expected in the first quarter, renewing investor expectations for a Bank of England rate hike this year.
  • Britain’s annual economic growth for the first quarter met consensus expectations, according to figures released by the Office for National Statistics on Friday. GDP grew by 1.2% on a year-to-year basis in the quarter, in line with expectations. On a quarterly basis, growth came in at 0.2%, from an earlier estimate of 0.1%.
  • US. stocks were higher after the close on Friday, as gains in theOil & Gas, Industrials and Basic Materials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.23%, while the S&P 500 index added 0.08%, and the NASDAQ Composite index climbed 0.09%.
  • European markets finished broadly higher on Friday with shares in Germany leading the region. The DAX is up 1.06% while France’s CAC 40 is up 0.91% and London’s FTSE 100 is up 0.28%.

Local Market:-

  • Indian stocks rose more than 1 percent on Friday, recovering from two straight sessions of declines, led by gains in blue-chips such as Reliance Industries Ltd and Larsen & Toubro Ltd.
  • The broader NSE index ended up 1.18 percent at 10,714.30, yet posted losses for a second straight month. The benchmark BSE index closed 1.1 percent higher at 35,423.48 and was up for a third straight month.
  • Both indexes, however, marked their first weekly loss in six as lingering concerns of U.S.-China trade war, a fall in rupee and a firm rise in oil prices hurt the market.