Rupee opens marginally lower at 67.24 per dollar

Rupee opens marginally lower at 67.24 per dollar

The Indian rupee opened marginally lower at 67.24 per dollar on Thursday against previous close of 67.21. Mohan Shenoi of Kotak Mahindra Bank said, "Emerging Market and commodity currencies were supported by recovery of brent crude oil price to USD 41/bbl. Further easing of monetary policy by European Central Bank is expected in its meeting today." "We expect the USD-INR to trade in a range of 66.95-67.25/dollar today," he said. The euro slipped as investors await the outcome of the European Central Bank meeting, which they expect will result in interest rates falling deeper into negative territory. New Zealand's kiwi dollar dropped toward its worst week in two months after the nation's central bank unexpectedly cut interest rates to a record.

 

 

Yen eases after China February CPI rises faster than expected

The yen eased in Asia as China reported a faster gain in consumer prices for February that expected, casting a shadow on prospects for further monetary easing. USD/JPY changed hands at 113.59, up 0.22%, while AUD/USD changed hands at 0.7480, down 0.07%. Consumer prices in China rose at a faster pace than expected in February, setting the stage for a tighter corridor to ease monetary policy in the face of slowing growth. In China CPI for February rose 1.6%, above the gain of 1.1% expected month-on-month for a year-on-year pace of 2.3%, well above the 1.9% seen. Producer price data fell 4.9% year-on-year as expected.

FOREX MARKET UPDATES FOR MARCH 09, 2016

Rupee slips 13 paise; opens at 67.21 per dollar

The Indian rupee opened lower by 13 paise at 67.21 per dollar on Tuesday versus 67.08 Friday. Ashutosh Raina of HDFC Bank said, "The USD-INR pair continues to gain from recent lows on the back of improvement in risk sentiment, with oil and commodity prices moving higher, coupled with overall dollar weakness." "We expect the USD-INR pair to trade between 66.50-67.50/dollar in the near term," he said. The dollar fell against a basket of currencies as big gains in oil prices rekindled demand for the euro and commodity-sensitive currencies.

Aussie falls as China trade data far weaker than expected

The Aussie fell further as key trade partner Chine reported dismal February estimates of trade, though the Chinese New Year holiday slowdown was a key factor. AUD/USD traded at 0.7427, down 0.55%, while the safe-have yen gained with USD/JPY down 0.46% to 112.93. In China, trade data showed exports slumped 25.4% in February year-on-year, well below the 12.5% drop expected, and imports declined 13.8%, also below the 10% drop seen for a trade balance surplus of $32.59 billion, far short of the $50.15 billion expected.

Rupee extends rally, opens 12 paise higher at 67.74 per dollar

Rupee extends rally, opens 12 paise higher at 67.74 per dollar

The Indian rupee extended upmove on Wednesday by opening at 67.74 a dollar, up 12 paise compared to 67.86 in previous session. This consistent recovery is led by rally in equity markets on hopes of rate cut post pricing in Union Budget. NS Venkatesh of IDBI Bank said, "The USD-INR strengthened yesterday and will take cues from the way the equity market as well as the crude prices behave. The pair is expected to trade between 67.80-67.90/dollar."

EUR/USD extends slide, as high pressure builds on Draghi for further easing

EUR/USD fell slightly on Tuesday to drop to fresh one-month lows, as euro zone manufacturing activity last month expanded at its slowest pace in a year, intensifying the pressure on the European Central Bank to inject stronger easing measures at a highly-anticipated meeting next week. The currency pair traded between 1.0835 and 1.0894, before settling at 1.0868, down 0.0018 or 0.17% on the session. The euro has fallen against the dollar in each of the last three sessions and 11 of the last 13. Since surging to three-month highs on February 11, the euro has plummeted by more than 3.75% against its American counterpart. EUR/USD likely gained support at 1.0538, the low from December 3 and was met with resistance at 1.1496, the high from Oct. 15.

FX Market Roundup: How Far will GBP/USD and USD/JPY Fall?

Daily FX Market Roundup 2.24.16

By Kathy Lien, Managing Director of FX Strategy for BK Asset Management

It has been an incredibly active day in the foreign exchange market with many major currencies experiencing big moves. The focus has been on the British pound, Japanese Yen and Canadian dollar as there was zero consistency in the performance of the greenback. The U.S. dollar strengthened versus the GBP, AUD and NZD but weakened against JPY, CAD and CHF. 

 

The latest economic reports show the U.S. recovery losing momentum but there are more pressing problems abroad. 

 

New home sales may have fallen more than expected and service sector activity contracted for the first time in 28 months according to Markit Economics but the impact on the dollar was limited by the data's influence on Fed policy. 

 

According to the latest comments from U.S. policymakers, the Fed is far more worried about market volatility than the direction of the economy. 

 

Most Fed Presidents still feel confident that the recovery will gain momentum but market developments tightened financial conditions, making it increasingly difficult for the Fed to justify raising interest rates next month. 

 

For the Fed to move forward with tightening it is not data but rather the markets that need to stabilize so don't expect much reaction to Thursday's jobless claims and durable goods reports.

READ MORE : FOREX MARKET UPDATES

FOREX MARKET UPDATES FOR 23 FEB 2016

Rupee gains 8 paise; opens at 68.39per dollar

The Indian rupee opened higher by 8 paise at 68.39 per dollar on Thursday versus 68.47 Wednesday. Mohan Shenoi of Kotak Mahindra Bank said, "Despite better-than-expected US industrial production data, the next Fed rate hike is unlikely to be before June 16." "Given weak equity markets in India, the USD INR is expected to trade today in a range of 68.30-68.60/dollar," he added.

Yen rises , Aussie falls as global mood darkens

Australian dollar was the biggest loser on major currency markets on Thursday, as data there and revived concern about global growth sent stock markets lower and the yen higher against the dollar.
China’s yuan, one source of global financial nerves in January, inched lower after data showed producer prices sank 5.3 percent last month. It remained above the level reached against the dollar when the Lunar New Year holiday began two weeks ago.A bigger-than-expected rise in Australian unemployment offered more evidence of the global weakness that caused the poorest start to a year for stock markets since the 2008 crash. Expectations are growing of further easing by central banks, in which it is difficult to pick the currency winners. Expectations that the Reserve Bank of Australia would be pushed to cut interest rates drove the Aussie 0.7 percent lower in early trade in Europe to $0.7158 AUD=D4.

Yen rises , Aussie falls as global mood darkens

Rupee gains 8 paise; opens at 68.39 per dollar

The Indian rupee opened higher by 8 paise at 68.39 per dollar on Thursday versus 68.47 Wednesday. Mohan Shenoi of Kotak Mahindra Bank said, "Despite better-than- expected US industrial production data, the next Fed rate hike is unlikely to be before June 16." "Given weak equity markets in India, the USD-INR is expected to trade today in a range of 68.30-68.60/dollar," he added.

 

Yen rises , Aussie falls as global mood darkens

Australian dollar was the biggest loser on major currency markets on Thursday, as data there and revived concern about global growth sent stock markets lower and the yen higher against the dollar.
China’s yuan, one source of global financial nerves in January, inched lower after data showed producer prices sank 5.3 percent last month. It remained above the level reached against the dollar when the Lunar New Year holiday began two weeks ago.A bigger-than-expected rise in Australian unemployment offered more evidence of the global weakness that caused the poorest start to a year for stock markets since the 2008 crash. Expectations are growing of further easing by central banks, in which it is difficult to pick the currency winners. Expectations that the Reserve Bank of Australia would be pushed to cut interest rates drove the Aussie 0.7 percent lower in early trade in Europe to $0.7158 AUD=D4

Rupee gains 8 paise; opens at 68.39per dollar

Rupee gains 8 paise; opens at 68.39per dollar

The Indian rupee opened higher by 8 paise at 68.39 per dollar on Thursday versus 68.47 Wednesday. Mohan Shenoi of Kotak Mahindra Bank said, "Despite better-than expected US industrial production data, the next Fed rate hike is unlikely to be before June 16." "Given weak equity markets in India, the USD-INR is expected to trade today in a range of 68.30-68.60/dollar," he added

Yen rises , Aussie falls as global mood darkens

Australian dollar was the biggest loser on major currency markets on Thursday, as data there and revived concern about global growth sent stock markets lower and the yen higher against the dollar.China’s yuan, one source of global financial nerves in January, inched lower after data showed producer prices sank 5.3 percent last month. It remained above the level reached against the dollar when the Lunar New Year holiday began two weeks ago. A bigger-than-expected rise in Australian unemployment offered more evidence of the global weakness that caused the poorest start to a year for stock markets since the 2008 crash. Expectations are growing of further easing by central banks, in which it is difficult to pick the currency winners.Expectations that the Reserve Bank of Australia would be pushed to cut interest rates drove the Aussie 0.7 percent lower in early trade in Europe to $0.7158 AUD=D4.