Feb 17 2018

Rupee logged its 1st weekly rise in 3 weeks

 Weekly Synopsis


Date:- 17th February 2018


Markets from 12th February 2018 to 16nd February 2018:-


Indian Rupee:-


  • Indian rupee logged its first weekly rise in three weeks against the dollar, as the greenback continued to weaken amid improved appetite for risk assets. For the week, rupee ended 0.30% higher against the greenback. The rupee closes yesterday at 64.21 against the previous weekly close of 64.3975 on February 09th, 2018 to a greenback. It trades in a weekly range between 64.33 to 63.81 against the greenback.


  • India’s foreign exchange reserves came off record highs at $419.76 billion as of Feb. 9, from $421.91 billion in the previous week, the central bank said yesterday. The reserves also snapped eight straight weeks of rise. The decrease was due to a fall in foreign currency assets to $394.65 billion from $396.77 billion in the previous week, according to the data from the Reserve Bank of India.


  • India’s trade deficit widened to $16.30 billion in January from $14.88 billion in the previous month, government data showed on Thursday.


  • India’s annual wholesale price inflation eased in January for the second straight month after touching an eight-month high in November, helped by a softer rise in food and fuel prices, government data showed on Thursday. Annual wholesale price inflation last month slowed to 2.84 percent from a year earlier, from a provisional 3.58 percent rise in December. The rise in January compares with a 3.25 percent increase forecast by economists in a poll.


  • India’s annual retail inflation slightly eased in January to 5.07 percent from the 17-month high hit in December, as food prices ebbed, data from the Ministry of Statistics showed on Monday. Analysts polled by had forecast January’s consumer price inflation to ease to 5.14 percent from December’s 5.21 percent.


  • India’s industrial output grew 7.1 percent in December from a year earlier, government data showed on Monday. Economists surveyed had forecast 6.2 percent growth in output compared with a upwardly revised 8.8 percent year-on-year increase in November.


Global Market:-


  • The dollar rose against a basket of major currencies but ended the week sharply lower after suffering heavy losses against both yen and euro throughout the week. The dollar index, tracking a basket of major currencies, rose 0.58 percent, with the euro down 0.81 percent to $1.2404. The Japanese yen weakened 0.18 percent versus the greenback at 106.33 per dollar.


  • The US Commerce Department reported building permits rose to a seasonally adjusted annual rate of 1.396 million units, while housing starts grew at a monthly pace of 9.7%to 1.326 million units. The University of Michigan’s consumer sentiment index showed a preliminary reading of 99.9 in February, topping expectations for a reading of 95.4.


  • The number of people who filed for unemployment assistance in the U.S. last week rose in line with expectations, holding near their lowest levels in nearly 45 years. The number of individuals filing for initial jobless benefits in the week ending Feb. 10 increased by 7,000 to a seasonally adjusted 230,000 from the previous week’s total of 223,000, the U.S. Department of Labor said. Analysts expected jobless claims to rise by 7,000 to 230,000 last week.


  • S. consumer prices rose by more than projected in January as apparel costs jumped the most in nearly three decades. The consumer price index rose 0.5 percent from the previous month, above the median estimate of economists for a 0.3 percent increase, a Labor Department report showed Wednesday.


  • Euro zone industrial production jumped more than expected in December, data from the EU statistics office Eurostat showed on Wednesday. Eurostat said industrial production in the 19 countries sharing the euro rose 0.4 percent month-on-month for a 5.2 percent year-on-year gain. Economists polled had expected a 0.2 percent monthly and 4.2 percent annual rise.


  • Wall Street squeezed out a gain on Friday to end higher for a sixth straight session, although it lost earlier ground after a U.S. grand jury indicted several Russians for interfering in the 2016 presidential election. The Dow Jones Industrial Average  rose 19.69 points, or 0.08 percent, to 25,220.06, the S&P 500  gained 1.05 points, or 0.04 percent, to 2,732.25 and the Nasdaq Composite dropped 16.97 points, or 0.23 percent, to 7,239.47.


  • European markets finished broadly higher on Friday with shares in France leading the region. The CAC 40 is up 1.13% while Germany’s DAX is up 0.86% and London’s FTSE 100 is up 0.83%.


Local Market:-


  • Indian shares ended lower on Friday, as financial stocks fell with Punjab National Bank down for a third straight session after it said earlier this week that it had been hit by a $1.77 billion fraud.


  • The benchmark BSE index closed down 0.84 percent at 34,010.76, rising 0.01 percent for the week. The broader NSE index ended 0.88 percent lower at 10,452.30, ending the week 0.03 percent down.


  • PNB shares fell 2.1 percent after declining 21 percent over the previous two sessions.