Jan 06 2018

Rupee posted its best week in 5 months

 Weekly Synopsis


Date:- 06th January 2018


Markets from 01st January 2018 to 05th January 2018:-


Indian Rupee:-


  • Indian rupee logged its biggest weekly rise in five months against the dollar, helped by foreign fund inflows and a broad greenback weakness. On a weekly basis, the rupee ended up 0.79%, its biggest weekly gain since the week ended Aug. 4, 2017. The rupee closes yesterday at 63.3650 against the previous weekly close of 63.87 on December 29th, 2017 to a greenback. It trades in a weekly range between 63.8650 to 63.3125 against the greenback.


  • India’s foreign exchange reserves rose for a third consecutive week to a fresh record high of $409.37 billion as of Dec. 29, from $404.92 billion in the previous week, the central bank said on Friday. The increase was due to a rise in foreign currency assets to $385.10 billion from $380.68 billion in the previous week, according to data from the Reserve Bank of India.


  • India’s annual infrastructure output grew 6.8 percent in November from a year ago, government data showed on Monday. The growth in output compares with an upwardly revised 5.0 percent year-on-year growth in October. During April-November, the annual output growth was 3.9 percent, data showed.


Global Market:-


  • The dollar gained on Friday after a brief dip as investors reckoned a weaker-than-expected U.S. December non-farm payrolls report would not deter the Federal Reserve from raising interest rates multiple times this year. The euro pared recent gains against the greenback but steadied at a three-year high, while GBP/USD tacked on 0.11% to $1.3563.


  • US. nonfarm payrolls increased by 148,000 jobs last month. Economists were forecasting job gains of 190,000. Employment data for October and November data were revised to show 9,000 fewer jobs created than previously reported. The unemployment rate remained unchanged at 4.1%, as expected.


  • The report also showed that U.S. average hourly earnings rose 0.3% last month, in line with projections. Meanwhile another report showed that service sector activity in the U.S. fell more than expected in December. The Institute of Supply Management (ISM) said its non-manufacturing purchasing manager’s index (PMI) decreased to 55.9 in December from the prior month’s reading of 57.4.


  • Most Federal Reserve policymakers supported the notion of a gradual approach to raising interest rates while agreeing that inflation developments should be monitored closely, according to the minutes of the Fed’s last policy meeting on Dec. 12 – Dec. 13 released on Wednesday.


  • Euro zone inflation eased in line with expectations in December, according to flash data released by Eurostat on Friday. The European Union’s statistics office said the consumer price index rose at an annual rate of 4%in December, from 1.5% in November.


  • The euro zone economy closed out the year with the strongest growth in nearly seven years, driven by accelerating services and manufacturing activity across all major economies, a survey showed on Thursday. IHS Markit’s Final Composite Purchasing Managers’ Index – seen as a good overall growth indicator for the euro zone – rose to 58.1 in December from 57.5 in November and up slightly from the flash estimate of 58.0.


  • The S&P 500 and Nasdaq notched their best weekly gains in more than a year on Friday as technology stocks helped lift major indexes to record highs. The Dow Jones Industrial Average rose 220.74 points, or 0.88 percent, to 25,295.87, the S&P 500  gained 19.08 points, or 0.70 percent, to 2,743.07 and the Nasdaq Composite added 58.64 points, or 0.83 percent, to 7,136.56.


  • European shares powered to their best week since last April on Friday. The pan-European STOXX 600 index was up 0.8 percent, holding at a two-month high, DAX was up 1.15% while France’s CAC 40 was up 1.05% and London’s FTSE 100 was up 0.37%.


Local Market:-


  • Indian shares marked record closing highs on Friday, posting their fifth consecutive weekly gain, as financials and metal stocks rose tracking global markets on strong economic data.


  • The benchmark BSE index closed up 0.54 percent at 34,153.85, while the broader NSE index ended 0.51 percent higher at 10,558.85. Both indexes gained nearly 0.3 percent on week.