Nov 25 2017

Rupee logs 2nd weekly gain

 Weekly Synopsis


Date:- 25th November 2017


Markets from 20th November 2017 to 24th November 2017:-


Indian Rupee:-


  • The Indian rupee posted its second straight weekly gain against the dollar, as the greenback weakened after the U.S. Federal Reserve’s latest meeting minutes showed policymakers’ caution about muted inflation growth. On a weekly basis, the currency rose 0.48%. The rupee closes on Friday at 64.6975 against the previous weekly close of 65.01 on November 17th, 2017 to a greenback. It trades in a weekly range between 65.1275 to 64.5450 against the greenback.


  • In an announcement made after market hours on Friday, S&P Global Ratings retained its credit rating on India at BBB- with a Stable outlook.


  • India’s foreign exchange reserves rose for a second week to $399.53 billion as of Nov. 17, from $399.29 billion in the previous week, the central bank said yesterday. The increase was driven by a rise in foreign currency assets to $375.09 billion from $374.88 billion in the previous week, according to data from the Reserve Bank of India. Foreign exchange reserves had hit a record high of $402.51 billion as of the week ended Sep. 15.


Global Market:-


  • The dollar fell sharply against a basket of major currencies after the euro strengthened amid easing German geopolitical uncertainty as Germany’s Social Democrats said it would consider talks with Angela Merkel’s Christian Democratic party to form a government. The S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.39% to 92.68. For the week, the dollar index fell nearly 1 percent, its worst weekly loss since September.


  • Minutes of the Fed’s Oct. 31 – Nov. 1 meeting showed many policymakers were cautious about the slowing inflation in the U.S., reducing bets of aggressive policy tightening by the monetary authority next year. The authority had kept interest rates unchanged in that policy.


  • The Social Democratic Party (SPD) is firmly convinced that talks have to take place. The SPD is not closed to talks,” Hubertus Heil, the general secretary, said early on Friday. The announcement eased days of uncertainty surrounding the future of the Angela Merkel after she announced Monday that she failed to form the country’s next government.


  • The euro hit its highest since Sept. 25 against the dollar, up 0.65 percent on the day and more than 1 percent for the week. It was the single currency’s third straight week of gains, its best run since July, and second straight 1 percent weekly gain.


  • Minutes from the ECB’s latest policy meeting, released on Thursday, showed policymakers had broadly agreed on extending their quantitative easing scheme, albeit at a lower level, but keeping asset purchases open-ended appeared to generate fiercer debate.


  • S. stock indices set fresh all-time highs on Friday, buoyed by a bright business outlook and strong corporate earnings, while the economy’s strength in continental Europe lifted the euro to a two-month high against the dollar. The Dow Jones Industrial Average rose 31.81 points, or 0.14 percent, to 23,557.99. The S&P 500 gained 5.34 points, or 0.21 percent, to 2,602.42 and the Nasdaq Composite added 21.80 points, or 0.32 percent, to 6,889.16. The S&P 500 so far this year has gained 16 percent, while the Nasdaq is up 28 percent.


  • European shares ended little changed on Friday, underpinned by gains among heavyweight financial stocks, which helped the pan-European STOXX 600 index snap a two-week losing streak. The STOXX 600 ended 0.1 percent down but rose 0.7 percent on the week, while the export-heavy German DAX index advanced 0.4 percent, shrugging off strength in the euro. The DAX gained 0.39% and the CAC 40 rose 0.20%. The FTSE 100 lost 0.10%.


Local Market:-


  • Indian shares ended higher for a seventh straight session on Friday as IT firms gained.


  • The benchmark BSE index closed up 0.27 percent at 33,679.24. The broader NSE index ended 0.40 percent higher at 10,389.7.


  • The last time the NSE index rallied for seven straight sessions was between June 12 and June 23, 2015. Both the indexes are up over 1 percent each for the week.