Rupee recovers from initial losses vs dollar, up 6 paise
The rupee recovered from initial losses against the American currency and was quoted higher by 6 paise to 62.00 on fresh selling of dollars by banks and exporters in view of strong foreign capital inflows into equity market.The rupee resumed lower at 62.08 per dollar as against the last closing level of 62.06 at the Interbank Foreign Exchange and dropped further to 62.20 on initial strong dollar demand from banks. However, it recovered from initial losses and was quoted higher at 62.00 on selling of dollars by banks and exporters. It hovered in a range of 62.00 and 62.20 per dollar during the morning trade. In London, the euro fell to its lowest level against the dollar since September 2003 yesterday after the Swiss National Bank scrapped its exchange rate floor of 1.20 francs to the euro. Meanwhile, the Indian benchmark Sensex moved down by 31.77 points or 0.11 per cent to 28,043.78 at 1000hrs.
Euro slips against franc, equities fall after shock Swiss move
The euro sank almost two percent against the Swiss franc Friday and Asian markets tumbled as traders were left stunned by Switzerland's shock decision to remove its currency peg to the euro. Oil edged up slightly, meanwhile, after plunging Thursday in reaction to OPEC's announcement that it produced more than its limit of the black gold in December, despite weak demand, low prices and a supply glut. Global markets were stunned Thursday when the Swiss National Bank (SNB) said it would scrap its 1.20 franc peg to the euro, which had been in place since the height of the European debt crisis three years ago. The news immediately sent the Swiss currency surging 30 percent to
0.8517 at one point before ending the day at 1.0035. In Asian trade, it rose again, sitting at 0.9945 in early trade. It also led already nervous dealers scurrying for safer investments, particularly the Japanese yen, although some confidence returned over the day. The dollar edged up to 116.57 yen Friday from 116.25 yen late in New York, but it is still well down from the 117.70 yen seen in Tokyo earlier Thursday. The European common currency fetched $1.1640 and 135.68 yen, compared with $1.1623 and 135.12 yen in US trade. But while it is marginally up from New York, it is still sharply down from $1.1773 and 138.64 yen Thursday before the SNB move. Adding downward pressure on the euro is the growing expectation the European Central Bank will unveil a vast bond-buying scheme next week aimed at kickstarting growth and avoiding deflation. Tokyo tumbled 1.43 percent, or 244.54 points, to end at 16,864.16. The index at one point was almost three percent down but recovered as the yen pared its gains. Sydney sank for the fifth consecutive session, shedding 0.60 percent, or 32.13 points, to close at 5,299.24 and Seoul closed 1.36 percent lower, giving up 26.01 points to 1,888.13. Hong Kong lost 0.71 percent in afternoon exchanges. However, Shanghai rose 1.20 percent, or 40.04 points, to 3,376.50. Traders extended a more than three percent gain Thursday
that was fuelled by bets that the government will unveil new economy-boosting measures. "The SNB caught almost everyone by surprise and it's creating unease and anxiety in markets," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg News. "The strategy is capital preservation for now, buying gold to hedge against the volatility which is going to continue." Bullion rose to $1,259.59 an ounce Friday from $1,246.19 late Thursday. Oil prices ticked up following another sell-off Thursday that came in reaction to OPEC's announcement.
The rupee recovered from initial losses against the American currency and was quoted higher by 6 paise to 62.00 on fresh selling of dollars by banks and exporters in view of strong foreign capital inflows into equity market.The rupee resumed lower at 62.08 per dollar as against the last closing level of 62.06 at the Interbank Foreign Exchange and dropped further to 62.20 on initial strong dollar demand from banks. However, it recovered from initial losses and was quoted higher at 62.00 on selling of dollars by banks and exporters. It hovered in a range of 62.00 and 62.20 per dollar during the morning trade. In London, the euro fell to its lowest level against the dollar since September 2003 yesterday after the Swiss National Bank scrapped its exchange rate floor of 1.20 francs to the euro. Meanwhile, the Indian benchmark Sensex moved down by 31.77 points or 0.11 per cent to 28,043.78 at 1000hrs.
The euro sank almost two percent against the Swiss franc Friday and Asian markets tumbled as traders were left stunned by Switzerland's shock decision to remove its currency peg to the euro. Oil edged up slightly, meanwhile, after plunging Thursday in reaction to OPEC's announcement that it produced more than its limit of the black gold in December, despite weak demand, low prices and a supply glut. Global markets were stunned Thursday when the Swiss National Bank (SNB) said it would scrap its 1.20 franc peg to the euro, which had been in place since the height of the European debt crisis three years ago. The news immediately sent the Swiss currency surging 30 percent to
0.8517 at one point before ending the day at 1.0035. In Asian trade, it rose again, sitting at 0.9945 in early trade. It also led already nervous dealers scurrying for safer investments, particularly the Japanese yen, although some confidence returned over the day. The dollar edged up to 116.57 yen Friday from 116.25 yen late in New York, but it is still well down from the 117.70 yen seen in Tokyo earlier Thursday. The European common currency fetched $1.1640 and 135.68 yen, compared with $1.1623 and 135.12 yen in US trade. But while it is marginally up from New York, it is still sharply down from $1.1773 and 138.64 yen Thursday before the SNB move. Adding downward pressure on the euro is the growing expectation the European Central Bank will unveil a vast bond-buying scheme next week aimed at kickstarting growth and avoiding deflation. Tokyo tumbled 1.43 percent, or 244.54 points, to end at 16,864.16. The index at one point was almost three percent down but recovered as the yen pared its gains. Sydney sank for the fifth consecutive session, shedding 0.60 percent, or 32.13 points, to close at 5,299.24 and Seoul closed 1.36 percent lower, giving up 26.01 points to 1,888.13. Hong Kong lost 0.71 percent in afternoon exchanges. However, Shanghai rose 1.20 percent, or 40.04 points, to 3,376.50. Traders extended a more than three percent gain Thursday
that was fuelled by bets that the government will unveil new economy-boosting measures. "The SNB caught almost everyone by surprise and it's creating unease and anxiety in markets," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg News. "The strategy is capital preservation for now, buying gold to hedge against the volatility which is going to continue." Bullion rose to $1,259.59 an ounce Friday from $1,246.19 late Thursday. Oil prices ticked up following another sell-off Thursday that came in reaction to OPEC's announcement.
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