Jun 22 2018

Rupee marked its 1st weekly gain in three weeks

Weekly Synopsis

Date:- 22nd June 2018

Markets from 18th June 2018 to 22nd June 2018:-

Indian Rupee:-

  • Indian rupee registered a weekly rise against the dollar for the first time in three weeks despite global fears of escalation in trade-related tensions between the U.S. and China, tracking a corresponding decline in the greenback. For the week, rupee ended up 0.26% against the greenback. The rupee closes on Friday at 67.8350 against the previous weekly close of 68.01 on June 15th, 2018 to a greenback. It trades in a weekly range between 68.38 to 67.7050 against the greenback.
  • India’s foreign exchange reserves fell to $410.07 billion as of the week ended Jun 15, from $413.11 billion in the previous week, the central bank said today. Today’s decrease was due to a fall in foreign currency assets to $385.33 billion from $388.39 billion in the previous week, according to data from the Reserve Bank of India. Foreign exchange reserves had jumped to a record high of $426.08 billion as of the week ended Apr. 13.

Global Market:-

  • The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.42% to 94.41.
  • Earlier in the week, President Donald Trump threatened to impose a 10% tariff on additional $200 billion worth of Chinese goods in retaliation to Beijing’s decision to impose tariffs on $50 billion of U.S. goods. China’s commerce ministry as saying that Beijing will have to adopt “qualitative” and “quantitative” measures to fight back firmly, if the U.S. imposes additional tariffs.
  • The Philadelphia Fed’s manufacturing index fell in June, to a reading of 19.9 from 34.4 in May, the Philly Fed reported on Thursday. The consensus forecast had been for a reading of 28.9.
  • Sales of previously-owned U.S. homes unexpectedly fell in May, according to figures released by the National Association of Realtors on Wednesday. Existing home sales fell 0.4% in May from the previous month to an annualized pace of 5.43 million units.
  • The Commerce Department of US. said the current account deficit, which measures the flow of goods, services and investments into and out of the country, widened by $8.0 billion to $124.1 billion, or 2.5 percent of national economic output, in the first three months of the year.
  • US. homebuilding rose in May, according to data released on Tuesday. Housing starts increased 5.0% to a seasonally adjusted annual rate of 1.350 million units last month, the Commerce Department said.
  • The euro was steady on Friday, as the U.S. dollar fell amid trade war concerns. EUR/USD rose 0.57% to 1.1675 while the pound was higher, with GBP/USD rising 0.52% to 1.3314.
  • The Bank of England left interest rates on hold on Thursday, in what was a widely expected decision, but left the door open for an August rate hike as policymakers judged that a slowdown in the economy in the first quarter was temporary. The BoE’s Monetary Policy Committee was split on the decision to keep interest rates unchanged at 0.5% with three out of nine members voting in favor of a quarter point increase.
  • A lone Bank of Japan policymaker said additional easing was needed to accelerate inflation, but most members wanted to keep monetary policy unchanged, minutes from the central bank’s policy meeting in April showed on Wednesday.
  • Oil prices rose as much as 2 percent on Friday as OPEC neared a deal to increase output to compensate for losses in production at a time of rising global demand. Benchmark Brent crude jumped $1.68 a barrel, or 2.3 percent, to a high of $74.73 before slipping to around $74.30, U.S. light crude was $1.00 higher at $66.54.
  • The Organization of the Petroleum Exporting Countries, meeting in Vienna with non-OPEC oil producers, agreed on Friday to raise production by around 1 million barrels per day (bpd) from July for the group and its allies, an OPEC source said.
  • European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.36% while France’s CAC 40 is up 0.99% and Germany’s DAX is up 0.47%.

Local Market:-

  • Indian shares closed higher on Friday, marking their fifth straight winning week, led by gains in financials such as Housing Development Finance Corp Ltd.
  • The broader NSE index closed 0.75 percent higher at 10,821.85, while the benchmark BSE index ended up 0.73 percent at 35,689.60. For the week, the NSE index gained slightly, while the BSE index inched up 0.2 percent. HDFC shares finished 2.7 percent higher in the session.