Jun 08 2018

Rupee posted its 1st weekly decline in 3 weeks

 Weekly Synopsis

Date:- 08th June 2018

Markets from 04th June 2018 to 08th June 2018:-

Indian Rupee:-

  • The Indian rupee posted its first weekly decline against the dollar in three weeks, as emerging market peers fell amid expectations of higher borrowing costs in the world’s largest economy. For the week, the rupee fell 0.7% against the greenback.. The rupee closes on Friday at 67.50 against the previous weekly close of 67.0050 on June 01st, 2018 to a greenback. It trades in a weekly range between 67.78 to 66.84 against the greenback.
  • India’s foreign exchange reserves fell to $412.23 billion as of June 1, compared with $412.82 billion a week earlier, the Reserve Bank of India said today.
  • Growing inflation concerns prompted India’s central bank to raise its policy rate for the first time in over four years on Wednesday, but it surprised some economists by keeping its stance “neutral” instead of changing to “tighten”. The Reserve Bank of India’s Monetary Policy Committee (MPC) lifted the repo rate by 25 basis points to 6.25 percent – the first rate change since a 25 basis point cut in August 2017.

Global Market:-

  • The dollar was higher while the euro retreated from earlier gains on Friday, as traders looked ahead to the G7 summit. The US. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.19% to 93.61.
  • The number of people who filed for unemployment assistance in the U.S. last week fell more than expected, according to official data released on Thursday. The number of individuals filing for initial jobless benefits decreased by 1,000 to 222,000the Labour Department said. Analysts had expected claims of 223,000 last week.
  • The rate of growth in the economy’s service sector accelerated again in May, according to a report released on Tuesday. The Institute of Supply Management said its non-manufacturing purchasing managers’ index rose to 56.8 in May, from 56.8 the previous month. Economists had forecast a reading of 57.9.
  • US. job openings rose to a record high in April, but hiring continued to lag, pointing to a worsening shortage of workers. Job openings, a measure of labour demand, increased to a seasonally adjusted 6.7 million from 6.6 million in March, the Labour Department said on Tuesday in its monthly Job Openings and Labour Turnover Survey, or JOLTS.
  • German industrial output and exports fell in April, data showed on Friday, adding to signs that Europe’s largest economy started the second quarter on a weak footing. Data from the Economy Ministry showed output fell by 1.0 percent, well below a forecast for a rise of 0.3 percent. Separate data from the Federal Statistics Office showed exports fell by 0.3 percent in April while imports rose 2.2 percent.
  • The European Central Bank will debate next week whether to end bond purchases later this year, the bank’s chief economist said on Wednesday, a hawkish message seen preparing investors for another cut in stimulus.
  • Activity in the UK service sector picked up at the fastest pace in three months in May, continuing to recover from March’s recent low, according to a closely watched business survey released on Tuesday. Research firm Markit said its services purchasing managers’ index rose to 54.0 in May from 52.8 in April, compared to forecasts for a reading of 52.9.
  • European markets are lower today with shares in Germany off the most. The DAX is down 0.37% while London’s FTSE 100 is off 0.02% and France’s CAC 40 is lower by 0.01%.

Local Market:-

  • Indian shares ended largely flat on Friday as losses in both indexes on account of profit-booking were capped by gains in Sun Pharmaceutical Industries Ltd after its Halol plant received Voluntary Action Indicated (VAI) status from the U.S. health regulator.
  • The broader NSE index closed down 0.01 percent at 10,767.65, while the benchmark BSE index ended 0.05 percent lower at 35,443.67.
  • Both indexes posted their third straight weekly gain, with the NSE index climbing 0.67 percent and BSE rising 0.61 percent for the week.