Rupee trims initial gains vs dollar, still up 17 paise
The Indian rupee trimmed its initial gains against the American currency, but was still quoted higher by 17 paise to 61.70 per dollar on selling of greenback by banks and exporters in view of strong foreign capital inflows into equity market. The rupee resumed higher at 61.60 per dollar as against the last weekend's level of 61.87 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 61.58 per dollar on initial selling of dollars. However, it trimmed its initial gains and was quoted at 61.70 per dollar at 1100 hrs on some demand from banks on the back of higher dollar in the overseas market. It hovered in the range of 61.58-61.73 per dollar during the morning trade. In New York, the euro fell to another 11-year low against the dollar on last Friday, a day after the Swiss National Bank's surprise decision to eliminate its exchange-rate cap removed a source of support for the shared currency.
Euro struggles near 11-year low as investors bet on ECB quantitative easing
The euro edged up against the dollar on Monday but was still close to an 11-year low as investors braced for the European Central Bank to take its boldest steps yet to combat deflation and revive the euro zone's moribund economy.
The Swiss National Bank removed one of the euro's few remaining pillars of support last Thursday when it stunned markets by abandoning the three-year-old cap on the Swiss franc against Europe's common currency. The SNB's policy U-turn, which means it will no longer be buying billions of euros in order to limit the franc's strength, sparked speculation that it was acting in anticipation of the ECB launching a large-scale quantitative easing programme at its next policy meeting on Thursday. The euro was trading at $1.1585, not far from a trough of $1.14595 hit on Friday. "There could be scope for substantial downside this week (for the euro)," said Michael Sneyd, an FX strategist at BNP Paribas in London."However, the expectations for the ECB are now quite consensus and the euro has already moved quite a long way ... so that's likely to make investors who don't have a bearish euro position on quite cautious." Traders said there would be volatility at the end of this week ahead of Greece's snap election on Sunday which, with anti-bailout party Syriza leading in the polls, could further undermine the credibility of the 19-nation currency bloc.
The Indian rupee trimmed its initial gains against the American currency, but was still quoted higher by 17 paise to 61.70 per dollar on selling of greenback by banks and exporters in view of strong foreign capital inflows into equity market. The rupee resumed higher at 61.60 per dollar as against the last weekend's level of 61.87 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 61.58 per dollar on initial selling of dollars. However, it trimmed its initial gains and was quoted at 61.70 per dollar at 1100 hrs on some demand from banks on the back of higher dollar in the overseas market. It hovered in the range of 61.58-61.73 per dollar during the morning trade. In New York, the euro fell to another 11-year low against the dollar on last Friday, a day after the Swiss National Bank's surprise decision to eliminate its exchange-rate cap removed a source of support for the shared currency.
The euro edged up against the dollar on Monday but was still close to an 11-year low as investors braced for the European Central Bank to take its boldest steps yet to combat deflation and revive the euro zone's moribund economy.
The Swiss National Bank removed one of the euro's few remaining pillars of support last Thursday when it stunned markets by abandoning the three-year-old cap on the Swiss franc against Europe's common currency. The SNB's policy U-turn, which means it will no longer be buying billions of euros in order to limit the franc's strength, sparked speculation that it was acting in anticipation of the ECB launching a large-scale quantitative easing programme at its next policy meeting on Thursday. The euro was trading at $1.1585, not far from a trough of $1.14595 hit on Friday. "There could be scope for substantial downside this week (for the euro)," said Michael Sneyd, an FX strategist at BNP Paribas in London."However, the expectations for the ECB are now quite consensus and the euro has already moved quite a long way ... so that's likely to make investors who don't have a bearish euro position on quite cautious." Traders said there would be volatility at the end of this week ahead of Greece's snap election on Sunday which, with anti-bailout party Syriza leading in the polls, could further undermine the credibility of the 19-nation currency bloc.
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