FOREX REPORT FOR 20 OCTOBER 2014

MARKET HEADLINES
 

Rupee up 19 paise against dollar in early trade
The rupee recovered from over seven-month low by appreciating 19 paise to 61.64 against the US dollar in early trade today at the Interbank Foreign Exchange on selling of the American currency by exporters and banks. Forex dealers said besides fresh selling of the American currency by exporters and banks, a higher opening in the domestic equity markets supported the rupee but dollar's strength agaisnt other curreices overseas, capped the gains. The Indian rupee had plunged by 42 paise to close at over seven-month low of 61.83 against the Greenback yesterday on heavy capital outflows and a spike in demand for the US dollar. Meanwhile, the benchmark BSE Sensex recovered by 71.37 points, or 0.27 per cent, to 26,070.71 in early trade today.

Rupee tumbles to over 7-month low, down 42 paise vs USdollar
Indian rupee today plummeted to 61.93 and closed 42 paise down at over seven- month low of 61.83 against the greenback on heavy capital outflows and a spike in demand for US dollars. The dollar index was up by a whopping 0.45 per cent against basket of six major global rivals, which also pushed the rupee to log its biggest daily loss since September 15. A widening trade deficit that hit a 18- month high in September was also among the factors that led to rupee depreciation. At the Interbank Foreign Exchange (Forex) market, the local unit commenced lower at 61.56 and attempted a recovery to touch a high of 61.43. However, it fell back to a low of 61.93 and closed at 61.83, logging a loss of 42 paise or 0.68 per cent. Today's close is the rupee's weakest level since 61.85 on March 4, 2014. "Demand for dollars from importers weakened rupee. Speculation amongst traders that a big defence payment is due in November that could reduce reserves also weakened the currency," said Suresh Nair, Director, Admisi Forex India Pvt Ltd. The Indian benchmark S&P BSE Sensex today closed sharply down by 349.99 points, or 1.33 per cent to end below 26K-mark for the first time after two months. Overseas investors, acoording to provisional data, sold equities worth over Rs 1,100 crore after about Rs 700-crore sell-off on Tuesday. Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee traded weak today taking cues from weak local equities and strong dollar."

Research Via is a leading financial advisory provides free tips on Indian share market like equity tips, stock tips, stock options tips, bullions tips, agro tips, commodity tips, nifty tips, base metals & energy tips, comex tips, international forex tips, domestic forex tips, agri tips, commodity (mcx& ncdex) tips.