FOREX REPORT FOR 13 AUGUST 2014

MARKET HEADLINES
 

Rupee down 5 paise against the US dollar
The rupee recovered against the American currency by five paise to 61.12 in late morning deals on bouts of dollar selling by exporters. Earlier the rupee resumed weak on sustained bouts of dollar demand at 61.22 as against the last closing level of 61.17 at the Interbank Foreign Exchange (Forex) Market. Earlier the rupee resumed weak on sustained bouts of dollar demand at 61.22 as against the last closing level of 61.17 at the Interbank Foreign Exchange (Forex) Market. Later it gained on dollar selling and was quoted 61.12 per dollar at 1020 hours. It moved in a range of 61.11 and 61.22 per dollar during the morning trade. Crude oil prices fell in Asia today on easing concerns about supply disruptions arising out of conflicts in Ukraine and Iraq. In New York Market, the US dollar also moved up against its major rivals late yesterday as investor concerns about geopolitical conflicts eased. Meanwhile, the benchmark BSE Sensex was trading higher by 150.53 points or 0.59 per cent to 25,669.77 at 1030 hours. 

Euro heads towards 9-month lows, Germany's ZEW survey seen weak
The euro fell towards 9-month lows against the dollar on Tuesday, as investors positioned for a weak German sentiment survey that is likely to add to signs of a slowdown in the euro zone recovery, specifically in Germany. The German ZEW survey for August will be released at 0900 GMT and both the current situation index and the expectations index are both forecast to have fallen, as many expect Europe's largest economy to be hit by sanctions imposed on Russia. Russia is one of Germany's biggest trading partners and the West has imposed tough sanctions on Moscow amid the continuing conflict with Ukraine. Russia, too has responded with sanctions, all which analysts say, will hurt the euro zone more than the U.S. economy. "If the ZEW collapses concerns about Russia will become more intense," Commerzbank currency strategist Lutz Karpowitz said. "That means the euro will not merely suffer as a result of a lack of momentum from other data today, but in the long run it will simply become more difficult for the euro if the European economy is unable to take off." The euro was down 0.15 per cent at $1.3664, not far from a nine-month low of $1.3333 struck on Aug 6. It was also lower against the yen at 136.70 yen, eyeing a recent trough of 135.73 yen. The euro's losses saw the dollar edge up. The index rose 0.1 per cent to 81.559 with the dollar making gains against the yen and the Swiss franc, too.

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