Sep 07 2018

Rupee posted its 4th weekly fall in 5 weeks

 Weekly Synopsis

Date:- 07th September 2018

 

Markets from 03rd September 2018 to 06th September 2018:-

 

Indian Rupee:-

  • The Indian rupee ended higher at 71.73 per dollar versus 71.9850 at previous close, as heavy greenback sales by private banks, likely on behalf of the central bank, eroded losses amid weak global risk appetite. However, the rupee fell 1% against the dollar this week, its fourth fall in last five weeks. The rupee closes on Friday at 71.73 against the previous weekly close of 70.99 on Aug 31st, 2018 to a greenback. It trades in a weekly range between 72.11 to 70.72 against the greenback.
  • India’s foreign exchange reserves fell to $400.10 billion as of Aug 31, compared with $401.29 billion a week earlier, the Reserve Bank of India said on Friday.

Global Market:-

  • The U.S. dollar was lower against other currencies on Friday, as investors waited to see if the White House would impose additional tariffs on China. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.09% to 94.86.
  • US. President Donald Trump could put tariffs on another $200 billion worth of Chinese goods that could go into effect as soon as Friday. China said it would retaliate if new tariffs were imposed.
  • Nonfarm Payrolls (NFP) rose by 201,000 in August, according to official data released on Friday. The data was higher than the consensus estimate for the creation of 191,000 jobs and the 163,000 positions that the ADP report indicated on Thursday. The previous month’s reading of NFP was revised to 147,000 from the 157,000 registered initially. The jobless rate unexpectedly held steady at 3.9%. Analysts had expected it to tick down to 3.8%.
  • Sterling jumped to a one-week high against the dollar on Friday after European Union negotiator Michel Barnier said the EU was open to discussing other “backstops” on the Brexit issue. The EU has made the so-called Irish ‘backstop’ a condition for any divorce deal before Britain leaves the EU on March 29, 2019, and both sides are under increasing pressure to overcome the outstanding issues. The British currency jumped 0.7 percent against the dollar to $1.3011.
  • The euro zone economy grew at 0.4 percent in the second quarter, EU statistics agency Eurostat confirmed on Friday. Eurostat confirmed its first estimate that the economy of the 19 countries sharing the euro zone increased by 0.4 percent quarter-on-quarter, while revising its year-on-year figure to 2.1 percent from an initial 2.2 percent.
  • The number of Americans filing new claims for unemployment aid fell to near a 49-year low last week. The Labour Department said on Thursday initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended Sept. 1, the lowest level since December 1969.
  • The Labour Department of US. said on Thursday nonfarm productivity, which measures hourly output per worker, increased at an unrevised 2.9 percent annualized rate in the April-June quarter. That was the strongest pace since the first quarter of 2015.
  • The U.S. trade deficit rose to a five-month high in July. The Commerce Department said the trade deficit increased 9.5 percent to $50.1 billion as exports of soybeans and civilian aircraft dropped and imports hit a record high. The trade gap has now widened for two straight months.
  • Activity in the UK construction sector slowed down last month, according to a closely watched business survey released on Tuesday. Research firm IHS Markit said its construction purchasing managers’ index fell to 52.9in August, compared to forecasts for a reading of 54.9.
  • European markets are lower today with shares in London off the most. The FTSE 100 is down 0.95% while Germany’s DAX is off 0.27% and France’s CAC 40 is lower by 0.24%.

Local Market:-

  • Indian shares ended higher on Friday helped by gains in energy and automobile stocks as the rupee regained some lost ground, but the benchmark indexes logged their worst week since end June.
  • The BSE index rose 0.38 percent to 38,389.82, but finished the week 0.66 percent lower. The broader NSE index advanced 0.45 percent to 11589.10, but posted a 0.78 percent loss on week.
  • Reliance Industries Ltd up 1.4 percent, was the top boost to the index. The Nifty Auto index climbed 2.2 percent, with Hero MotoCorp Ltd, up 5.2 percent, topping the gains.