Rupee logged its first weekly rise in 3 weeks

Rupee logged its first weekly rise in 3 weeks

12 Apr 2019 06:53 PM

Weekly Synopsis


Indian Rupee

Indian Rupee logged its first weekly rise in three weeks against the dollar, helped by inflows into local assets. It rose 0.1% against the greenback this week, against last week’s 0.1% decline. The rupee closes on today at 69.15 against the previous weekly close of 69.22 on April 05th, 2019 to a greenback. It trades in a weekly range between 69.73 to 68.83 against the US Dollar.

India's foreign exchange reserves rose to $413.78 billion, as of April 5, compared with $411.91 billion a week earlier, the Reserve Bank of India said on Friday. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves.

India's annual retail inflation picked up in March to 2.86 percent compared with 2.57 percent in February, government data showed on Friday. Analysts polled had forecast March's annual increase in the consumer price index at 2.80 percent.

India's industrial output in February climbed 0.1 percent from a year earlier, but lagged forecast, government data showed on Friday. Analysts polled had forecast February's annual increase in industrial output at 2 percent.

Global Market

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1% at 96.675 - it was last seen at 96.80, despite rising against the yen on the back of better-than-expected jobless claims and producer price inflation data on Thursday.

The number of people who filed for unemployment assistance in the U.S. fell by 8,000 last week to a seasonally adjusted 196,000, the U.S. Department of Labour said. It was the lowest level since Oct. 4 1969, when claims totalled 193,000.Economists had expected weekly jobless claims to rise to 211,000 from the previous week’s upwardly revised total of 204,000.

U.S. producer prices rose more than expected in March. The Labour Department said its producer price index (PPI) increased 0.3% last month, while the core PPI, which excludes food and energy costs, rose 0.6%.In the 12 months through February, overall factory prices increased 2.2% while core prices rose 2.4%.

Growth in U.S. consumer prices showed little variation in March. The consumer price index rose 1.9% from a year ago, while core inflation, that excludes volatile food and energy costs, increased 2.0%. That's compared to consensus forecasts for them to rise 1.8% and 2.1%, respectively.

The European Central Bank left interest rates on hold as expected Wednesday, as policymakers continue to evaluate whether its most recent stimulus is enough to offset downward pressure on growth. The central bank reiterated its forward guidance on interest rates.

The rate of economic growth in the U.K. slowed as expected in February. Gross domestic product grew 0.2% in February, the Office for National Statistics reported on Wednesday, slowing from the 0.5% expansion seen in January but in line with consensus.

U.S. job openings dropped to an 11-month low in February and hiring decreased. Job openings, a measure of labour demand, tumbled by 538,000 to a seasonally adjusted 7.1 million, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS, report on Tuesday. The drop was the biggest since August 2015.

New orders for U.S.-made goods fell modestly in February and shipments rose after four straight monthly declines. Factory goods orders dropped 0.5 percent, the Commerce Department said on Monday. Economists polled had forecast factory orders falling 0.6 percent in February. Factory orders rose 2.4 percent compared to February 2018.

The British public's expectations for the level of inflation over the coming year remained at their highest in five years. British people surveyed in February expect inflation to average 3.2 percent over the next 12 months, unchanged from November's survey which was the highest reading since November 2013, according to the quarterly BoE survey.

The euro rose sharply on Friday in a move may have been driven by anticipated currency demand arising from a Japanese bank's plans to purchase a German multi-billion dollar aviation finance business. The euro rose 0.6 percent to $1.1318, its highest since March 26.

China's exports rebounded in March but imports shrank for a fourth straight month and at a sharper pace. March exports rose 14.2 percent from a year earlier, customs data showed on Friday, the strongest growth in five months. Economists polled by Reuters had expected a 7.3 percent gain after February's 20.8 percent plunge.

Oil prices rose on Friday as involuntary supply cuts from Venezuela, Libya and Iran supported perceptions of a tightening market, already underpinned by a production reduction deal from OPEC and its allies.

Brent crude oil futures were at $71.67 a barrel, up 84 cents and heading for a weekly gain of 1.9 percent, their third weekly gain in a row. U.S. West Texas Intermediate (WTI) crude futures were at $64.53, up 95 cents and set for a weekly rise of 2.3 percent, their sixth straight week of gains.

European markets are higher today with shares in Germany leading the region. The DAX is up 0.63% while France's CAC 40 is up 0.37% and London's FTSE 100 is up 0.30%.

Local Market

Indian shares ended higher on Friday, boosted by heavyweight ITC Ltd, but the indexes marked their first weekly fall in eight ahead of the fourth-quarter corporate results.

The benchmark BSE index closed up 0.41 percent at 38,767.11, while the broader NSE index ended 0.4 percent higher at 11,643.45. Both indexes finished the week about 0.2 percent lower.