DAILY FOREX REPORT FOR 03 JULY 2014

MARKET HEADLINES

Rupee hit day's high of 59.62; ends day at 59.69 against US dollar
The rupee hit day's high of 59.62 against the US dollar in today's intraday trade., before closing the day at 59.69, up 38 paise. The Indian currency closed yesterday at 60.07/08, after touching a session high of 59.8550, the highest since June 19. Falls in rupee track gains in share indexes to record highs, and strong dollar inflows after India's Finance Minister Arun Jaitley warned on Tuesday against "economic populism", sparking hopes of tough fiscal consolidation measures in the upcoming annual budget due on July 10. Traders say the central bank stepped up its dollar purchases around 59.70 levels to prevent the pair from falling further. Overseas investors bought Indian shares worth $142.8 million on Tuesday,
provisional exchange data shows with shares up by 1.2 per cent. Domestic shares rose to record highs after Finance Minister Arun Jaitley's comment on Tuesday that "mindless populism" in policymaking needed to be checked, which stoked expectations of a pragmatic budget on July 10.

Rupee up 2 paise against dollar in early trade
The rupee rose marginally by two paise to 60.05 against the US dollar in early trade today on sustained capital inflows amidst a higher opening in the domestic equity markets. Dealers attributed the rise in domestic currency to sustained selling of the dollar by exporters amidst heavy foreign capital inflows. Besides, dollar's weakness against other currencies overseas also supported the rupee's rise, they added. The rupee rose by 10 paise, its biggest single-day rise in over ten days to end at 60.07 against the dollar after the government hiked fuel and LPG prices to ease subsidy burden and rise in stocks. Meanwhile, the benchmark BSE Sensex surged 216.52 points, or 0.84 per cent, to hit new record high of 25,732.87 in opening trade.

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.