DAILY FOREX REPORTS FOR 22 JANUARY 2016

Rupee rebounds ; opens 7 paise higher at 67.88per dollar

The Indian rupee rebounded in early trade on Thursday after hitting a 28-month low in previous session. The currency has opened higher by 7 paise at 67.88 per dollar against 67.95 Wednesday. Mohan Shenoi, Kotak Mahindra Bank says current risk-off phase, concerns regarding Chinese slowdown, strong dollar, high dollar debts outside US and increased risk of dollar squeeze, widening credit spreads and plummeting oil and share prices could force the Federal Reserve not to implement another rate hike in March. However, potential intervention from Bank of Japan and caution before European Central Bank meeting later today could temper the negative sentiment, he adds. Shenoi expects USD-INR to trade today in a range of Rs 67.75-68.20/USD.

Russian rouble tumbles to record low, stocks fall again

Russia's rouble fell sharply to a new record low on Thursday, following the latest slide in oil prices, and selling pressure remained firmly on emerging market stocks already suffering their worst start to a year. The benchmark emerging equity index was down 0.7 percent to fresh six-and-a-half year lows, led lower by Chinese mainland stocks and Russian shares , with dollar-denominated stocks touching a 13-month low. The rouble plunged through 83 to the dollar for the first time on record in early Moscow trading and didn't stop until it had gone past, weakening 4.4 percent on the day.As well as the sell off in currencies and stocks, EM dollar-bond spreads over safe-haven U.S. treasuries have blown out to 514 basis points (bps), the highest in almost seven years