Dec 09 2017

Rupee gained 0.01% on a weekly basis

 Weekly Synopsis


Date:- 09th December 2017


Markets from 04th December 2017 to 08th December 2017:-


Indian Rupee:-


  • The Indian rupee posted its biggest single-session gain in nearly two weeks against the dollar on Friday, the currency rose 0.19%, its biggest percentage gain since Nov. 27. On a weekly basis, the Rupee rose 0.01%. The rupee closes yesterday at 64.4450 against the previous weekly close of 64.4625 on December 01st, 2017 to a greenback. It trades in a weekly range between 64.6050 to 64.22 against the greenback


  • India’s foreign exchange reserves rose to $401.94 billion as of Dec 1, compared with $400.74 billion a week earlier, the Reserve Bank of India said on Friday. The increase was driven by a rise in foreign currency assets to $376.30 billion from $375.09 billion in the previous week, according to data from the Reserve Bank of India. Foreign exchange reserves had hit a record high of $402.51 billion as of the week ended Sep. 15.


  • India’s Monetary Policy Committee on Wednesday held interest rates steady as expected, as economic growth gathered pace and inflation quickened to a seven-month high. The Reserve Bank of India’s repurchase rate was held at 6%, the MPC said in a statement. The six-member rate-setting panel had cut the rate by 25 basis points in August. The MPC maintained its ‘neutral’ policy stance, but raised its inflation forecast for the second half of the year and retained its growth projection.


Global Market:-


  • The dollar rose against a basket of major currencies on Friday after a mixed nonfarm jobs report showed the US economy created more jobs than expected but wage growth remained subdued. The S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.16% to 93.90.


  • The Labour Department said Friday, U.S. non-farm payrolls rose by 228,000 jobsin November, as the post-hurricane recovery in the labor market continued. That beat economists’ forecasts for 200,000 new jobs. Wage growth, however, undershot expectations rising just 0.2% compared to expectations for a 0.3% increase, while wage growth in the previous month was revised downwards dropping to 0.1%.


  • A slump in the pound following reports of a “breakthrough” in UK-EU brexit negotiationsas the UK is believed to have agreed to pay up €50 billion to settle the so-called Brexit divorce bill. With the divorce bill out the way, the UK-EU negotiations on a trade deal are expected to get underway. GBP/USD fell 0.59% to $1.3395. The breakthrough in brexit talks trigger risk-on sentiment which weighed on safe-haven currencies such as the Swiss franc and yen, with the latter adding to overnight losses following upbeat Japan GDP data.


  • Japan’s economy grew twice as fast as originally estimated in the third quarter thanks to big gains in capital expenditure, revised data showed on Friday. The economy grew an annualized 2.5 percent in July-September, handily beating the preliminary reading of 1.4 percent annualized expansion.


  • China’s producer price inflation slowed to a four-month low in November as factory activity softened due to the government’s ongoing efforts to curb pollution, cooling demand from factories for raw materials. Producer prices rose 5.8 percent from a year earlier – the lowest since July, the National Bureau of Statistics said on Saturday. The rise was slightly less than market expectations and compared with the previous month’s 6.9 percent increase.


  • Wall Street and other major global stock markets posted solid gains on Friday. The Dow Jones Industrial Average rose 117.68 points, or 0.49 percent, to 24,329.16, the S&P 500 gained 14.52 points, or 0.55 percent, to 2,651.5 and the Nasdaq Composite added 27.24 points, or 0.4 percent, to 6,840.08.


  • European markets finished broadly higher on Friday with shares in London leading the region. The FTSE 100 is up 1.00% while Germany’s DAX is up 0.83% and France’s CAC 40 is up 0.28%.


Local Market:-


  • Indian shares rose for a second straight session on Friday amid hopes the ruling Bharatiya Janata Party (BJP) would win state elections in Gujarat beginning this weekend, with financials accounting for most of the gains.


  • The broader NSE index closed up 0.97 percent at 10,265.65, rising 1.42 percent this week, its biggest since late October.


  • The benchmark BSE index ended 0.91 percent higher at 33,250.30. The index posted its biggest weekly gain since early November, climbing 1.27 percent this week.