Jan 13 2018

Rupee posted worst weekly fall since November 2017

 Weekly Synopsis

 

Date:- 13th January 2018

 

Markets from 08th January 2018 to 12th January 2018:-

 

Indian Rupee:-

 

  • Indian rupee posted its biggest weekly fall in about nine weeks, as importers stepped up dollar purchases amid a steady rise in global crude oil prices that could stoke inflation. For the week, the rupee ended down 0.4% against the dollar, its steepest fall since the week ended Nov.10. The rupee closes yesterday at 63.63 against the previous weekly close of 63.3650 on January 05th, 2018 to a greenback. It trades in a weekly range between 63.84 to 63.24 against the greenback.

 

  • India’s foreign exchange reserves rose for a fourth consecutive week to a fresh record high of $411.12 billion as of Jan.5, from $409.37 billion in the previous week, the central bank said on Friday. The increase was due to a rise in foreign currency assets to $387.15 billion from $385.10 billion in the previous week, according to the data from the Reserve Bank of India.

 

  • India’s retail inflation rate accelerated to 5.21% in December from a year earlier, the fastest pace of annual expansion since July last year, as prices of food turned costlier, government data showed yesterday.  In November, retail inflation had stood at 4.88%. December’s print exceeded the 5.10% median forecast in a survey of economists and also breached the central bank’s 4% medium-term target.

 

  • India’s industrial output rose 8.4% in November from a year earlier, the fastest pace of expansion since October 2015, as manufacturing and mining production grew at a faster pace, government data showed on Friday. The reading was sharply higher than October’s revised expansion of 2%, and also beat a 4.4% median estimate in a poll of economists.

 

Global Market:-

 

  • The dollar fell sharply against a basket of major currencies weighed by a surge in the euro and sterling, while upbeat US economic data failed to lift sentiment. The sharp rise in the euro weighed on the dollar overshadowing a duo of mostly update reports on inflation and retail sales. The US. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell to 90.88.

 

  • The Labour Department said on Friday its core Consumer Price index rose 0.3% in December, edging up 0.2% in November. The uptick in consumer prices in year-on-year through December rose to 2.1%. The Commerce Department said on Friday that retail sales rose 4% in December that was below economists’ forecast for a 0.4% rise. While November’s retail sales reading was revised upward to 1.4% from 0.8%.

 

  • Sterling rocketed to its highest level against the dollar since the Brexit vote to leave the European Union after a report that the Netherlands and Spain were open to a deal for Britain to remain as close as possible to the trading bloc. Sterling was last trading at $1.3731, up 0.03 percent.

 

  • The euro rallied against the greenback after Chancellor Angela Merkel struck a deal with the Social Democrat Party (SPD) on Friday, paving the way for government coalition talks, easing political uncertainty.

 

  • Minutes from the European Central Bank’s December 13-14 policy meeting released Thursday revealed that members saw that risks to the current outlook were to the upside and may require a gradual shift in guidance in early 2018.

 

  • Oil prices rose for a sixth day on Friday after Russia’s oil minister said that global crude supplies were “not balanced yet,” alleviating market concerns about a wind-down of the OPEC-led deal to reduce production. Brent crude futures rose 61 cents to settle at $69.87 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 50 cents to $64.30. WTI hit its strongest since late 2014 at $64.77 on Thursday. For the week, Brent rose 3.3 percent while WTI jumped 4.7 percent.

 

  • Wall Street continued its rally on Friday with record closing highs as the fourth-quarter earnings season kicked off with solid results from banks and robust retail sales drove investor optimism about economic growth. The Dow Jones Industrial Average rose 228.46 points, or 0.89 percent, to 25,803.19, the S&P 500 gained 18.68 points, or 0.67 percent, to 2,786.24 and the Nasdaq Composite added 49.29 points, or 0.68 percent, to 7,261.06. For the week, the S&P rose 1.6 percent, compared with the Dow’s 2-percent rise and a 1.8-percent advance in the Nasdaq.

 

  • European markets finished higher on Friday with shares in France leading the region. The CAC 40 is up 0.52% while Germany’s DAX is up 0.32% and London’s FTSE 100 is up 0.20%.

 

Local Market:-

 

  • Indian shares edged higher on Friday to a record close, boosted by surging financial and energy stocks, while investors awaited monthly inflation data for clues on the central bank’s monetary policy.

 

  • The broader NSE index closed 0.28 percent higher at 10,681.25, while the benchmark BSE index ended up 0.26 percent at 34,592.39. The indexes hit record closing levels four times this week.

 

  • For the week, the NSE index added 1.2 percent, while the BSE index advanced 1.3 percent. Both indexes posted their sixth consecutive weekly gain. ICICI Bank Ltd rose 2.7 percent, while Reliance Industries Ltd closed 1.2 percent higher.