May 27 2017

Rupee logs best week in 1-month

 Weekly Synopsis


Date:- 27th May 2017


Markets from 22nd May 2017 to 26th May 2017:-


Indian Rupee:-


  • The Indian rupee posted its best weekly increase in nearly a month against the dollar, as record gains in local shares boosted hopes of more foreign fund inflows, while minutes of the Federal Reserve’s May meeting also weighed on the greenback. On a weekly basis, the rupee rose 0.31%, its biggest weekly gain since the week ended Apr. 28. The rupee closes on Friday at 64.44 against the previous weekly close of 64.64 on May 19th, 2017 to a greenback. It trades in a weekly range between 64.9550 to 64.42 against the greenback.


  • India’s foreign exchange reserves surged  to a fresh record high of $379.31 billion as on May 19, from $375.27 billion in the previous week, the central bank said on Friday. This is the steepest weekly gain since week ended Sep 9, 2016. The rise was driven by an increase in foreign currency assets to $ 355.10 billion in the previous week, according to the data from Reserve Bank of India.


Global Market:-


  • The dollar rose to a four-day high on Friday buoyed by upbeat U.S. economic growth data, which eased concerns of a slowdown in the U.S. economy, fuelling expectations the Federal Reserve would hike its benchmark rate in June. The S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.23% to 97.36. The U.S. economy slowed less than initially expected in the first quarter. Gross domestic product increasedat a pace of 1.2%, well above the 0.7% rise reported last month. In a separate report, The Commerce Department said durable goods orders fell 0.7% in April after rising 2.3% in March. Economists had expected a 1.2% drop in durable goods order.


  • The minutes to the Federal Reserve May 2-3 meeting revealed that some Fed officials cautioned that longer-term rate increases would be subject to economic data, showing the dip in first quarter economic growth had been “transitory”.


  • The poundfell sharply against the dollar to $1.2797, down 1.12%, with an opinion poll showing a narrowing in the Conservatives’ lead over Labour, raising uncertainty over the appeal of Theresa May’s leadership and the ruling party’s election manifesto. A YouGov poll put the Conservative lead at five points, which is well below the Conservatives’ sizeable 20-point lead held over Labour last month.


  • Oil prices rebounded to rise more than 1 percent on Friday, but Brent crude ended the week nearly 3 percent lower after an OPEC-led decision to extend production curbs did not go as far as many investors had hoped.  On Thursday, the Organization of the Petroleum Exporting Countries and other producers pledged to continue output cuts of 1.8 million barrels per day (bpd) for another nine months, through the first quarter of 2018. Crude prices plunged 5 percent after the decision as some had priced in more aggressive output cuts.


  • Wall Street saw another strong day for consumer stocks, offset by weakness in healthcare and real estate shares. The flattening market had threatened to break a winning streak, but the S&P 500 eked out a slightly higher day ahead of a long weekend. The Dow Jones Industrial Average .DJI fell 2.67 points, or 0.01 percent, to end the week at 21,080.28, the S&P 500 .SPX gained 0.75 point, or 0.03 percent, to 2,415.82 and the Nasdaq Composite .IXIC added 4.94 points, or 0.08 percent, to 6,210.19.


  • European markets finished mixed as of the most recent closing prices on Friday. The FTSE 100 gained 0.40%, while Germany’s DAX was off 0.15%. Shares in France were unchanged with the CAC 40 at 5,336.64.


Local Market:-


  • The Benchmark BSE index rallied on Friday to end above 31000 for the first time, as higher derivative rollover led to strong follow up buying in index heavyweight such as Reliance Industries and ITC Ltd.


  • The BSE Index closed up 0.9% to 31,028.21, after hitting a high of 31,074.07. The NSE index rose 0.9% to end at 9,595.10, after touching a record high of 9,604.90. For the week, the NSE gained 1.77% while the BSE rose1.85%.