Apr 07 2018

Rupee logged 1st weekly rise in 3 weeks on bunched-up Dollar inflows

 Weekly Synopsis

 

Date:- 07th April 2018

 

Markets from 02nd April 2018 to 06th April 2018:-

 

Indian Rupee:-

 

  • Indian rupee logged its first weekly rise in three weeks against the dollar, helped by bunched-up greenback inflows after a long weekend amid hopes of debt-related flows after Central bank’s monetary policy. On a weekly basis, the rupee rose 0.32% against the dollar. The rupee closes on Friday at 64.9650 against the previous weekly close of 65.17 on March 28th, 2018 to a greenback. It trades in a weekly range between 65.1750 to 64.90 against the greenback.

 

  • India’s foreign exchange reserves rose to $424.36 billion as of March 30, compared with $422.53 billion a week earlier, the Reserve Bank of India said on Friday.

 

  • India’s central bank is still wary of upside risks for inflation despite a sharp fall in price pressures in February, prompting the monetary policy committee to keep rates on hold while retaining its “neutral” stance, Governor Urjit Patel said on Thursday.

 

  • India’s annual infrastructure output grew 5.3 percent in February from a year ago, government data showed on Monday. The growth in output compares with a downwardly revised 6.1 percent year-on-year growth in January. During April-February, the annual output growth was 4.3 percent, data showed.

Global Market:-

 

  • The dollar index, which measures the greenback versus a basket of major currencies, fell 0.42 percent and was last seen at 90.10, with the euro up 0.41 percent to $1.2288. The Japanese yen firmed 0.49 percent versus the greenback at 106.86 per dollar.

 

  • The U.S. economy created 103,000 in March, well below the 326,000 jobs created in February, according to a report released Friday by the U.S. Department of Labor. That missed economists’ forecast for 193,000. The Jobless rate remained unchanged at 4.1%, missing economists’ forecasts for a 0.1% decline to 4%. Average hourly earnings grew 0.3% for February, in-line with expectations.

 

  • Federal Reserve will likely need to keep raising U.S. interest rates to keep inflation under control, Fed Chairman Jerome Powell said, adding that it was too soon to know if rising trade tensions would hit the U.S. economy. In his first speech on the economic outlook since assuming the helm at the U.S. central bank on February 5, Powell said on Friday the labor market appeared close to full employment and that inflation was poised to rise toward the Fed’s 2 percent objective in the coming months.

 

  • The U.S. trade deficit increased to a near 9-1/2-year high in February as both exports and imports rose to record highs, but the shortfall with China narrowed sharply. The Commerce Department said on Thursday the trade gap rose 1.6 percent to $57.6 billion. That was the highest level since October 2008 and followed a slightly downwardly revised $56.7 billion shortfall in January.

 

  • Inflation in the euro zone rose in March after three months of declines, according to a flash estimate released on Wednesday. The bloc’s statistics agency Eurostat said its consumer price index rose by 1.4% in March from the same month a year earlier, up from 1.1% in February and in line with forecasts.

 

  • Activity in the UK service sector rose at the slowest pace in more than one-and-a-half years last month, according to a closely watched business survey released on Wednesday. Research firm Markit said its services purchasing managers’ index fell to 51.7 in March, compared to forecasts for a reading of 53.9.

 

  • On Wall Street, the Dow Jones Industrial Average fell 706.29 points, or 2.88 percent, to 23,798.93. The S&P 500 lost 69.99 points, or 2.63 percent, to 2,592.85 and the Nasdaq Composite dropped 179.07 points, or 2.53 percent, to 6,897.48.

 

  • European markets finished lower on Friday with shares in Germany leading the region. The DAX is down 0.52% while France’s CAC 40 is off 0.35% and London’s FTSE 100 is lower by 0.22%.

 

Local Market:-

 

  • Indian indexes ended slightly higher on Friday, led by gains in stocks such as Lupin Ltd, but broader gains were capped as sentiment was subdued following U.S. President Donald Trump’s proposal to impose more tariffs on China.

 

  • The broader NSE index closed up 0.06 percent at 10,331.60 while the benchmark BSE index ended 0.09 percent higher at 33,626.97. Both indexes posted a weekly gain of 2 percent each.

 

  • Lupin, the top gainer on the NSE index, rose after the drugmaker said its facility received an establishment investigation report from the U.S. Food and Drug Administration.