May 19 2018

Rupee logged 6th weekly decline against US Dollar

 Weekly Synopsis

 

Date:- 19th May 2018

 

Markets from 14th May 2018 to 18th May 2018:-

 

Indian Rupee:-

 

  • Indian rupee logged a sixth consecutive weekly decline against the dollar, tracking a rally in global crude oil prices to their highest levels since 2014, given Asia’s third largest economy’s status as a major oil importing nation. The Indian currency closed at 68.0050 against the dollar, 1.01% lower than last week’s close of 67.3250.
  • India’s foreign exchange reserves fell for a fourth week to $417.70 billion as of the week ended May 11, against $418.94 billion hit in the previous week, the central bank said yesterday. Friday’s decrease was due to a fall in foreign currency assets to $392.45 billion from $393.72 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’s trade deficit slightly widened to $13.72 billion in April from $13.25 billion a year ago, government data showed on Tuesday.
  • India’s annual retail inflation accelerated in April to 4.58 percent, after easing for three straight months, government data showed on Monday, mainly driven by faster increases in fuel prices.

 

Global Market:-

 

  • The dollar retreated from a fresh five-month high against a basket of major currencies as a rout of the euro eased, prompting traders to take profits on the greenback despite concerns about proposals laid out by a future Italian coalition government. The US. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.09% to 93.48. The greenback earlier in the session had hit a high of 93.74, the highest in five months.
  • In the week ahead, investors are looking to Wednesday’s release of minutes from the Federal Reserve’s latest monetary policy meeting for clues about the pace of the current tightening cycle. On Thursday, minutes from the last European Central Bank gathering will also be released.
  • The Philadelphia Fed’s manufacturing index rose higher than expected in May, to a reading of 34.4 from 23.2 in April, the Philly Fed reported on Thursday. The consensus forecast had been for a reading of 21.0.
  • The number of people who filed for unemployment assistance in the U.S. last week rose more than expected, according to official data released on Thursday. The number of individuals filing for initial jobless benefits increased by 11,000 to 222,000 in the previous week, the Labour Department said.
  • US. industrial production rose in April, according to data released on Wednesday. The Federal Reserve reported that industrial output advanced 0.7% last month after gaining 0.5% in March. Economists had forecast industrial production rising 0.5%.
  • EUR/USD fell 0.16% $1.1775 pressured by a drop in Italy’s 10-year bond yield as the Five-Star Movement and League reached a coalition agreement to govern the Italy, raising fears that the country finances could come under pressure as they laid out bulky spending proposals.
  • Inflation in the euro zone slowed in April, according to revised figures from the bloc’s statistics agency Eurostat on Wednesday. Eurostat confirmed its preliminary flash estimate that its consumer price index slowed to 1.2% year-on-year in April, down from 1.3% in March.
  • Oil prices fell, but Brent crude marked a sixth straight week of gains, boosted by plummeting Venezuelan production, strong global demand and looming U.S. sanctions on Iran. The benchmark on Thursday broke through $80 for the first time since November 2014. U.S. crude settled down 0.3 percent at $71.28 a barrel, while Brent settled at $78.51, down 1 percent.
  • On Wall Street, the Dow Jones Industrial Average rose 1.11 points to 24,715.09, the S&P 500 lost 7.16 points, or 0.26 percent, to 2,712.97 and the Nasdaq Composite dropped 28.13 points, or 0.38 percent, to 7,354.34.

 

Local Market:-

 

  • Indian shares ended lower for a fourth straight session on Friday, dragged by financials such as HDFC Bank and Housing Development Finance Corp, while sentiment was subdued amid caution over developments in U.S.-China trade negotiations.
  • The benchmark BSE index closed down 0.86 percent at 34,848.3, slipping 1.93 percent for the week. The broader NSE index ended 0.81 percent lower at 10,596.4, shedding 1.94 percent over the week. Both the indexes marked their biggest weekly loss in 10 weeks.
  • HDFC Bank closed 0.77 percent lower, while Housing Development Finance Corp ended down 1.18 percent.