Mar 17 2018

Rupee posts best weekly gain in 7 weeks

 Weekly Synopsis


Date:- 17th March 2018


Markets from 12th March 2018 to 16th March 2018:-


Indian Rupee:-


  • Indian rupee recorded the biggest weekly gain in seven weeks against the dollar, helped by equity-related inflows from recent local listings and a host of upbeat domestic macroeconomic data. On a weekly basis, the rupee was 0.40% higher against the greenback. The rupee closes yesterday at 64.93 against the previous weekly close of 65.1650 on March 09th, 2018 to a greenback. It trades in a weekly range between 65.0650 to 64.80 against the greenback.


  • India’s foreign exchange reserves rose for a second consecutive week to $421.49 billion as of the week ended Mar. 9, from $420.76 billion in the previous week, the central bank said yesterday. The reserves had hit a 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 $396.33 billion from $395.64 billion in the previous week, according to the data from the Reserve Bank of India.


  • India’s trade deficit narrowed to $12 billion in February from $16.30 billion in the previous month, the trade secretary said on Thursday. Merchandise exports for February were $25.8 billion, while imports were $37.8 billion.


  • India’s annual retail inflation eased for the second straight month in February to 4.44 percent, as food prices fell, government data showed on Monday. Analysts polled had forecast February’s consumer price inflation to ease to 4.80 percent from 5.07 percent in the previous month.


  • India’s wholesale price inflation rose 2.48% on year in February, the slowest pace of price gain since July, as food prices and fuel and power costs rose at a slower pace, government data showed on 14 March 2018. The February reading was slower than an annual 2.84% increase in the previous month, and lagged a median forecast for a 2.50% annual increase in a poll of economists.


Global Market:-


  • The dollar rose against a basket of major currencies as traders cheered mostly positive economic data and easing political turmoil in Washington. The US. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.09% to 90.22.


  • The U.S. Labor Department’s latest Job Openings and Labor Turnover Survey(JOLTs) report, a measure of labor demand, showed job openings in July improved to about 6.31m, beating expectations of 5.89m. Housing starts fell 7.0% to a seasonally adjusted annual rate of 236 million units, the Commerce Department said on Friday. Permits for future home building decreased 5.7% to a rate of 1.298 million units.


  • US. industrial production rose in February, according to data released on Friday. The Federal Reserve reported that industrial output advanced 1.1% last month after slipping 0.3% in January. Economists had forecast industrial production rising 0.3%.


  • US. consumer sentiment rose in March, according to a report published on Friday. The preliminary publication of the data for February from the University of Michigan’s Consumer Survey Center showed that consumer sentiment rose to 102.0 last month. That was compared to February’s reading of 99.7. Analysts had forecast a drop to 99.3.


  • US. consumer price growth slowed in February, The Labor Department said on Tuesday its Consumer Price Index rose 0.2 percent last month after jumping 0.5 percent in January. In the 12 months through February, the CPI rose 2.2 percent, up from 2.1 percent in January as the weak reading from last year dropped from the calculation.


  • The S&P 500 and the Dow Industrials rose on Friday, boosted by strong industrial output numbers, though all three of Wall Street’s major indexes posted losses for the week. The Dow Jones Industrial Average rose 72.85 points, or 0.29 percent, to end the week at 24,946.51, the S&P 500 gained 4.68 points, or 0.17 percent, to 2,752.01 and the Nasdaq Composite added 0.25 point, or 0 percent, to 7,481.99. For the week, the Dow fell 1.57 percent, the S&P lost 1.04 percent, and the Nasdaq dropped 1.27 percent.


  • European markets finished higher on Friday with shares in Germany leading the region. The DAX is up 0.36% while London’s FTSE 100 is up 0.34% and France’s CAC 40 is up 0.29%.


Local Market:-


  • Indian shares fell 1.5 percent on Friday, the sharpest in more than a month, with financial and energy stocks leading the decline.


  • The benchmark BSE index  declined 1.51 percent to 33,176, ending 0.4 percent lower for the week.


  • The broader NSE index fell 1.59 percent to 10,195.15, ending down 0.3 percent for the week. Both indexes posted their third straight weekly drop.