DAILY FOREX REPORT FOR 11/09/2014

MARKET HEADLINES
 

Rupee weakens to near 1-month low on Fed worries
The Indian rupee weakened to its lowest in nearly a month on Wednesday tracking falls in emerging markets due to worries the U.S. Federal Reserve would raise interest rates earlier than expected, although exporters' dollar sales capped broader falls. Emerging markets tracked falls in Wall Street and a rise in U.S. bond yields after a San Francisco Federal Reserve Bank paper released on Monday showed investors underestimated the speed at which the Fed might raise interest rates. That raised concerns the U.S. central bank could signal an earlier-than-expected rate hike at its next policy meeting on Sept. 16-17. The partially convertible rupee traded at 61.0375 per dollar, its weakest level since Aug. 14, at12:50 p.m. (0720 GMT). The rupee had ended trade on Tuesday at 60.60/61. Traders expect the rupee to hold in a 60.70 to 61.00 to a dollar range in the rest of the session.

Rupee down 23 paise against dollar in early trade
The rupee weakened by 23 paise to 60.83 against the US currency in early trade today at the Interbank Foreign Exchange market due to dollar's gains against other currencies overseas. Forex dealers said besides strengthening of dollar, increased demand for the American unit from importers and a weak opening in the domestic equity market put pressure on the rupee. The domestic currency had lost 31 paise, its biggest daily loss in over a month, to close at 60.60 against the US dollar in yesterday's trade on concerns US interest rates may rise sooner than investors had anticipated. Meanwhile, the benchmark BSE Sensex fell 130.78 points, or 0.48 per cent, to 27,134.54 in early trade today.

Rupee stabilises after hitting 3-wk low; exporters sell dollars
Rupee was trading at 60.78/79 versus its Tuesday's close of 60.60/61. Exporters stepped up dollar selling around the 60.80 mark, preventing further gains in the rupee. The pair had hit 60.8775 earlier in the session, its highest since Aug. 20. Traders will continue to monitor foreign fund flows for direction. NSE index, or Nifty was down 0.5 per cent. The pair was seen in a 60.60 to 61.00 range during the session

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