Feb 24 2018

Rupee marks worst week in over 3 months

 Weekly Synopsis


Date:- 24th February 2018


Markets from 19th February 2018 to 23rd February 2018:-


Indian Rupee:-


  • Indian rupee posted its biggest weekly decline in more than three months, as the Federal Reserve’s latest meeting minutes strengthened bets of a faster pace of rate increases in the U.S. this year, boosting demand for the greenback. On a weekly basis, the rupee fell 0.81% against the dollar, its steepest decline since the week ended on Nov. 10. The rupee closes yesterday at 64.73 against the previous weekly close of 64.21 on February 16th, 2018 to a greenback. It trades in a weekly range between 65.1075 to 64.41 against the greenback.


  • India’s foreign exchange reserves rose to $421.72 billion as of the week ended Feb. 16, from $419.76 billion in the previous week, the central bank said yesterday. The reserves had hit a fresh record high of $421.91 billion as of the week ended Feb. 2. The increase was due to a rise in foreign currency assets to $396.57 billion from $394.65 billion in the previous week, according to the data from the Reserve Bank of India.


  • According to minutes of India’s Monetary Policy Committee’s February meeting released on 21 February 2018, members warned of inflation risks going ahead, but stressed the need to await incoming data on inflation and growth.


Global Market:-


  • The dollar edged higher against a basket of major currencies on Friday, extending its recovery from a three-year low last week, as the potential for a more aggressive U.S. Federal Reserve prompted investors to pare bearish bets against the greenback. The dollar index, which measures the greenback against a basket of six other major currencies, was up 0.12 percent at 89.847. The index hit a three-year low of 88.253 on Feb. 16.


  • The number of Americans filing for unemployment benefits fell to a near 45-year low last week, pointing to strong job growth in February and solid momentum in the economy. Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 222,000 for the week ended Feb. 17, the Labor Department said on Thursday. Claims fell to 216,000 in mid-January, which was the lowest level since January 1973.


  • Federal Reserve policymakers expressed a cautious outlook on wage growth amid a “few signs of a broad-based pickup in wage growth,” but remained confident that inflation would “move up this year,” according to the minutes of the Fed’s January policy meeting.


  • European Central Bank policymakers are growing increasingly confident about inflation but agree that any changes in forward guidance on monetary policy would be premature, the minutes of its latest policy meeting showed. The minutes of the ECB’s Jan. 25 policy meeting showed that officials are increasingly confident about inflation but still believe patience is required.


  • Britain’s annual economic growth was revised lower for the fourth quarter, according to figures released by the Office for National Statistics on Thursday. GDP grew by 4%on a year-to-year basis in the quarter, the ONS said, from a preliminary 1.5% estimate. On a quarterly basis, growth came in at 0.4%, from an earlier estimate of 0.5%.


  • U.S. stocks rallied on Friday, lifted by gains in technology stocks and a retreat in Treasury yields as the Federal Reserve eased concerns about the path of interest rate hikes this year. The Dow Jones Industrial Average rose 348.61 points, or 1.4 percent, to 25,311.09, the S&P 500  gained 43.44 points, or 1.61 percent, to 2,747.4 and the Nasdaq Composite added 127.30 points, or 1.77 percent, to 7,337.39.


  • European markets finished mixed as of the most recent closing prices on Friday. The DAX gained 0.18% and the CAC 40 rose 0.15%. The FTSE 100 lost 0.11%.


Local Market:-


  • Indian shares ended higher on Friday, tracking gains in global equities, as investors bought shares of recent underperformers such as pharma and financials.


  • The benchmark BSE index closed up 0.95 percent at 34,142.15, ending 0.39 percent higher for the week.


  • The broader NSE index ended 1.04 percent higher at 10,491.05, gaining 0.37 percent for the week.