Rupee continued to outshine weak US dollar over last week

It's been an action packed week for the forex market as overall sentiment undergone a sea change.
Rupee continued to outshine against the beleaguered US dollar and ended at a fresh 16-month high of 65.46 on the back of frantic dollar unwinding by banks and exporters amid dovish outlook by Fed on future rate hikes.
It's been an action packed week for the forex market as overall sentiment undergone a sea change in the interim on hopes that the government will accelerate its reform agenda tracking the BJP's sweeping victory in in Uttar Pradesh and Uttarakhand elections.
The four-day stratospheric rise strengthened the domestic currency by a whopping 114 paise against the USD. Massive capital inflows on hopes of more reform measures following BJP's strong showing in the recently held state elections spurred the rupee's biggest rally since early 2015.
A spectacular rally in domestic equities which helped the 50-share broder Nifty to close at all-time high levels lending further support to rally.
It also got an added fillip from bullish macro data, which showed that the country's industrial production bounced back in January, expanding by 2.7 per cent year-on-year.
Lesser-than-anticipated hawkish monetary policy stance too weighed on trade.
The home currency resumed on a strong footing at 66.20 from last Friday's closing value of 66.60 at the Interbank Foreign Exchange (forex) market on heavy dollars selling from speculative traders, tracking weekend developments.
Maintaining its ascending triangle, the home unit hit a fresh high of 65.21 on Wednesday despite suspected RBI's intervention to curb speculative trades.
It finally settled the week on a buoyan note at 65.46, revealing a solid gain of 114 paise, or 1.71 per cent - stretching the gains for the fourth-straight week.
The much-anticipated turnaround on the economic front has opened up a barrage of foreign capital fund flows into India.
In the just four sessions Foreign funds and overseas investors have pumped in USD 1085.47 million during the week, while they pumped in over Rs 10,000 crore in the Indian capital markets this month so far.
On the global front, the greenback remained under immense pressure and slipped to a five-week low spooked by fading expectations of a series rate increases by the US Federal Reserve despite fairly buoyant macro economic outlook.
The US Federal Reserve dominated the week's proceedings as its open market committee delivered a widely expected 25 basis point rise in interest rates but maintained its forecasts for the gradual pace of monetary tightening
policy this year and next.
The dollar index a measure of the US currency against a basket of peers ended sharply lower at 100.14 from 101.38 - its biggest weekly loss since last November.

 

Shoot

Trending News

Byju’s acquires US-based Osmo for $120 million

Personal care brand Arata Zero Chemicals raises Rs 3.5 crore in seed capital

Etail may lose Rs 40,000 crore, retail to get a 3rd of it

Amazon food biz to log off if new rules remain on menu

Changes to FDI policy unclear, don’t help the cause of startups: Lenskart's Peyush Bansal

Slowdown or not, we are aggressive on US: TCS CEO Rajesh Gopinathan

SpaceX to layoff 10% of workforce

Amazon Pay gets another Rs 300 crore from parent entity

Steadview Capital invests $74M in Ola valuing it at around $6B

Byju’s ups revenue to Rs 490 cr in FY 18, losses drop by half

A Rs 120-cr WhatsApp message to fight fake news

OYO bulks up international leadership with key hires

For Matrix Partners, transaction-based startups mean business

Amazon joins global companies such as Google, WhatsApp and Truecaller that have put their bets on the UPI business in partnership with banks.

Uber looks to double its engineering headcount in India

SoftBank to invest additional $2B in WeWork: Sources

Snapdeal claims to have added 50,000 sellers in last 12 months

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities