Jan 20 2018

Rupee logs 2nd weekly decline

 Weekly Synopsis


Date:- 20th January 2018


Markets from 15th January 2018 to 19th January 2018:-


Indian Rupee:-


  • Indian rupee posted a second straight week of losses, on sustained concerns over a mid-week rally in crude oil prices to a fresh 44-month high and weak trade deficit at home. For the week, rupee ended 0.3% lower against the greenback. The rupee closes yesterday at 63.8450 against the previous weekly close of 63.63 on January 12th, 2018 to a greenback. It trades in a weekly range between 64.1050 to 63.33 against the greenback.


  • India’s foreign exchange reserves rose for a fifth consecutive week to yet another record high of $413.83 billion as of Jan.12, from $411.12 billion in the previous week, the central bank said yesterday. The country’s foreign exchange reserves hit a record high for the fourth straight week. The increase was due to a rise in foreign currency assets to $389.83 billion from $387.15 billion in the previous week, according to the data from the Reserve Bank of India.


  • India’s trade deficit widened to $14.88 billion from $13.83 billion in the previous month, government data showed on Monday. Merchandise exports for December rose 12.36 percent from a year ago to $27.03 billion. Goods imports last month were $41.91 billion, a gain of 21.12 percent from a year ago, data from the commerce and industry ministry showed.


  • India’s annual wholesale price inflation eased in December from an eight-month high touched in November, driven by slower rises in food prices, government data showed on Monday. Annual wholesale price inflation last month slowed to 3.58 percent from a year earlier, from a provisional 3.93 percent rise in November. The rise compares with a 4.00 percent increase forecast by economists in a poll. Wholesale food prices in December rose 2.91 percent year-on-year, compared with a 4.10 percent rise a month earlier, the data showed.


Global Market:-


  • S. dollar held near three-year lows and a U.S. government shutdown loomed, while U.S. Treasury yields continued their ascent to hit their highest levels since September 2014. The trade-weighted dollar index was last up 0.1 percent, but was on pace for its fifth straight weekly drop, and is down nearly 2 percent so far in 2018.


  • Democratic Senate leader Chuck Schumer met with President Donald Trump at the White House to search for ways to avert a U.S. government shutdown, but Schumer said afterward that disagreements remained as the clock ticked toward a midnight deadline to pass a funding bill.


  • S. consumer sentiment unexpectedly fell in January amid speculation of the impact of recent tax legislation, dampening optimism over the American economy, according to a report published on Friday. The preliminary publication of the data for January from the University of Michigan’s Consumer Survey Center showed that consumer sentiment dropped to 94.4 from 95.9 in the previous month. Analysts had forecast the reading to improve to 97.0.


  • Industrial production in the U.S. rose much more than expected in December. In a report, the Federal Reserve said that industrial production increased by 0.9% in December from the previous month, compared to expectations for a rise of just 0.4% and a decline of 0.1% in November that was revised from an initial 0.2% increase.


  • Retail sales in the UK declined much more than expected in December, dampening optimism over the British economy, official data showed on Friday. In a report, UK Office for National Statistics said that retail sales decreased by 1.5% in December from the prior month, compared to the previous 1.0% gain which was revised from an initial 1.1% rise. Analysts had expected December’s reading to drop by just 0.6%.


  • Consumer price inflation (CPI) in the UK pulled back from a five-year high in December, official data showed on Tuesday. In a report, the UK Office for National Statistics (ONS) said the rate of consumer price inflation rose from the year before by a seasonally adjusted 3.0% last month, in line with expectations compared to November’s 3.1% increase which had been the highest inflation since March 2012.


  • Shares on Wall Street rose modestly, with each of the major Wall Street indexes marking their third straight weekly gain. The Dow Jones Industrial Average rose 53.91 points, or 0.21 percent, to 26,071.72, the S&P 500 gained 12.27 points, or 0.44 percent, to 2,810.3 and the Nasdaq Composite added 40.33 points, or 0.55 percent, to 7,336.38. For the week, the Dow rose 1.04 percent, the S&P 500 advanced 0.86 percent and the Nasdaq rose 1.04 percent.


  • European markets finished broadly higher on Friday with shares in Germany leading the region. The DAX is up 1.15% while France’s CAC 40 is up 0.58% and London’s FTSE 100 is up 0.39%.


Local Market:-


  • India’s broader NSE index breached the 10,900 mark for the first time on Friday, with financial stocks leading the gains, as investors remained bullish after the government decided to cut tax rates on certain products and services.


  • The NSE index closed up 0.72 percent at 10,894.70 and posted a weekly gain of 2 percent. The benchmark BSE index ended 0.71 percent higher at 35,511.58, and rose 2.67 percent this week.


  • Both indexes posted their seventh consecutive weekly gain and hit record closing highs for the third time this week.