May 25 2018

Rupee snaps six consecutive weeks of losses

 Weekly Synopsis

Date:- 25th May 2018

Markets from 21st May 2018 to 25th May 2018:-

Indian Rupee:-

  • The rupee rose 0.83%, marking its biggest percentage gain since Mar. 14, 2017, helping wipe out all weekly losses. On a weekly basis it rose 0.34%, logging the biggest weekly gain in over two months and snapping six consecutive weeks of losses. The rupee closes on Friday at 67.7750 against the previous weekly close of 68.0050 on May 18th, 2018 to a greenback. It trades in a weekly range between 68.46 to 67.7075 against the greenback.
  • India’s foreign exchange reserves fell to $415.05 billion as of May 18, compared with $417.70 billion a week earlier, the Reserve Bank of India said on Friday.

Global Market:-

  • The greenback was trading higher on Friday while the pound inched down as investors looked ahead to testimony from Fed Chair Jerome Powell and Bank of England Governor Mark Carney. Both Federal Reserve Chairman Jerome Powell and BOE Governor Mark Carney are expected to participate in a panel discussion of “Financial Stability and Central Bank Transparency” at the “Sveriges Riskbank Conference: 350 Years of Central Banking – The Past, The Present and The Future” in Stockholm, Sweden.
  • Sales of previously-owned U.S. homes fell in April, according to figures released by the National Association of Realtors on Thursday. Existing home sales fell 2.5% in April from the previous month to an annualized pace of 5.46 million units.
  • The number of individuals filing for initial jobless benefits in the week ending May 19 increased by 11,000 to a seasonally adjusted 234,000 from the previous week’s total of 223,000, the U.S. Department of Labour said.
  • Federal Reserve policymakers saw inflation nearing the U.S. central bank’s target prompting the need for gradual rate hikes, according to the minutes of its May meeting, published on Wednesday. The Fed kept its benchmark rate unchanged at 1.50% to 1.75% at the conclusion of its two-day policy meeting on May 2 and stuck to its projections for two additional rate hikes this year.
  • German business confidence grew in May, according to survey data released on Friday. The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of companies, rose to 102.2 from 102.1 in May. The reading was worse than economists’ expectations for 102.7.
  • Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors, registered a reading of 54.1 this month, an 18-month low and down from 55.1 in April. Economists had forecast a reading of 55.0.
  • Britain’s annual economic growth for the first quarter went unrevised, according to figures released by the Office for National Statistics on Friday. GDP grew by 1.2% on a year-to-year basis in the quarter, unchanged from the preliminary estimate and in line with expectations. On a quarterly basis, growth came in at 0.1%, which was also in line with expectations for no change from the preliminary reading.
  • The benchmark Brent crude oil price declined 2.37% to $76.92 per barrel today, extending 1.27% in overnight trade, amid reports that Saudi Arabia and Russia will discuss raising OPEC and non-OPEC oil output by around 1 million barrels per day (bpd), easing supply glut. A final decision is expected to be taken in a Jun. 22-23 meeting in Vienna. It rose to $80.49 per barrel on May 22, the highest since November 2014. Yesterday, Russian Energy Minister Alexander Novak said oil output restrictions could be eased if OPEC and other members see the market balancing next month.
  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.74% while France’s CAC 40 is up 0.30% and London’s FTSE 100 is up 0.14%.

Local Market:-

  • Indian shares ended higher on Friday helped by gains in financials such as HDFC Bank and Kotak Mahindra Bank, after the Rupee firmed up against the dollar in late trade.
  • The benchmark BSE index closed 0.76 percent higher at 34,924.87 while the broader NSE index ended up 0.87 percent at 10,605.15.
  • The BSE index gained 0.22 percent for the week while the NSE index rose 0.18 percent. Both indexes registered a seventh weekly gain in nine.