DAILY FOREX REPORT FOR 10 OCTOBER 2014

MARKET HEADLINES
 

Rupee ends day at 61.05 versus US dollar
The rupee closed the day at 61.09 against the US greenback, after gaining 50 paise to 60.90 per dollar in intraday trade. This was on the back of persistent selling of the American unit by banks and exporters amid bearish dollar overseas and rallying domestic equities.The rupee had resumed higher at 61.13 per dollar as against yesterday's closing level of 61.40 at the Interbank Foreign Exchange ( Forex). In the New York market, the US dollar languished at a two-week low against its major rivals in early trade, having fallen for a third straight session minutes after the US Federal Reserve's last policy meeting which prompted markets to push out the likely timing of an interest rate rise.

Russia central bank makes 17.66 billion roubles worth of forex interventions on October 7
Russia's central bank said on Thursday that it had conducted 17.66 billion roubles ($440 million) worth of forex interventions to defend the rouble on October 7. The central bank releases its interventions data with a two-day lag.The rouble has been sliding on falling oil prices and broad risk aversion towards Russia because of its role in the Ukraine crisis.

Rupee sees biggest single-day gain in nearly 2 months
The rupee posted its biggest single-day gain in nearly two months on Thursday, after hitting the highest level in more than two weeks after the U.S. Federal Reserve's September policy meeting minutes suggested it was in no hurry to raise interest rates. The dollar fell to a three-week low against the yen, as investors cut favourable bets after minutes of the Federal Reserve's last meeting prompted many to push out expectations for the likely timing of an interest rate rise. The index of the dollar against six major currencies was down 0.22 per cent with most Asian currencies also rallying against the greenback. "The dollar took quite a beating and we saw domestic equities rally, both together helped the rupee gain," said Naveen Raghuvanshi, a foreign exchange dealer with DCB Bank. "We could see the pair touch 60.80 going by technicals but there is good state-run bank buying around 61 levels. Broadly the near-term range is likely to be 60.80 to 61.40/45," he added. Traders are now awaiting retail and wholesale inflation data and factory output data due to be released next week for domestic cues. The partially convertible rupee closed at 61.04/05 per dollar compared with 61.3950/4050 on Thursday. The rupee touched 60.9025 earlier, its strongest level since Sept. 23. The rupee gained for a fourth straight day, rising 0.6 per cent, its biggest single-day gain since Aug. 14. Gains in the domestic share market also helped with good dollar selling seen by custodian banks.

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