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.

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.

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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.

FOREX MARKET UPDATES FOR 04 FEB 2016

Rupee slips below 68/$; opens lower by 21 paise at 68.19/$

The Indian rupee slipped below 68 mark in the early trade on Wednesday. It has opened lower by 21 paise at 68.19 per dollar against previous close of 67.98. Pramit Brahmbhatt of Veracity said ,"Taking cues from global equity market sell-off, expect rupee to depreciate further and will head towards 68.50/dollar mark. The range for the day will be 67.5-68.25/dollar. "US dollar fell against the euro and yen after a drop in oil prices suggested US inflation would stay low and prevent the Federal Reserve from hiking interest rates at a steady pace this year.

Ruble fell amid sink in oil prices

The Russian ruble declined yesterday as further drop in oil prices along with speculation over Russian central bank could delay a return to a rate-cutting cycle to avoid stoking inflation. USDRUB gained by 0.12% to 0.78 yesterday. Oil prices plunged over 5% both WTI and Brent yesterday as worries about the demand outlook and rising supply. However, Russian central bank left its monetary policy unchanged on 29th Jan meeting and policy makers argued that volatility in ruble largely due to volatile in oil prices Russian ruble tumbled all time low two weeks back, when oil prices plunged to multiyear low. Further any talk between Russia and OPECs for production cut, will support the oil, which is positive for Ruble. Technically speaking, USDRUB has crucial resistance at 80.80. If prices breach this level, it can further rally towards 82.10. On the lower side, it has a support around 76.10 levels.

DAILY FOREX REPORT FOR 27 JANUARY 2016

Rupee gains 9 paise; opens opens at 67.54 per dollar

The Indian rupee opened higher by 9 paise at 67.54 per dollar on Monday against 67.63 Friday. Agam Gupta of Standard Chartered said, "We should see a range of 67.45 - 67.80/dollar today. I expect stronger demand for USD to emerge below 67.50 levels. Exporters will look for the upticks to hedge their dollar receivables." "Market participants will continue to keep an eye on equity and oil moves through the day," he added. Dollar firm, boosted by increased expectations of monetary easing by Central Banks in Europe and Japan, and by strong US housing data.

Yen largely steady after weaker than expected exports,imports

The yen and Aussie held largely steady in Asia on Monday with trade data out of Tokyo a bit weaker than expected and investors keeping an eye on central banks. USD/JPY traded at 118.77, down 0.03%, while AUD/USD changed hands at 0.7007, up 0.02%. In Japan, the December trade balance came in at a surplus of ¥140 billion, beating a surplus of ¥100 billion seen. Exports fell 8.0%, more than the drop of 6.8% expected, while imports fell 18.0%, more than the 16.4% drop seen. The U.S. dollar index, which measures the greenback's strength against a trade -weighted basket of six major currencies, was quoted at 99.49, down 0.11%.

FOREX REPORT UPDATES FOR 12 JAN 2016

Rupee declines 27 paise; opens at 66.90 per dollar

The Indian rupee declined in early trade on Monday. It has opened lower by 27 paise at 66.90 per dollar versus 66.63 Friday. Agam Gupta of  StanChart said, "We expect the USD-INR pair to trade between 66.75-67.10/dollar range today." The yen jumped to 117 per dollar, its strongest level since August. The dollar index was at around 98 mark.

China turns Yuan sharply higher, Yen eases

China's yuan again dominated moves on major foreign exchange markets on Monday, driven 1 percent higher against the dollar in offshore trade after reports of another round of aggressive intervention by Beijing. With  Chinese stocks sinking a further 5 percent, global financial markets were struggling to shake off the jitters from last week's fall in the yuan. The dollar was higher against the euro while the yen hit five - month highs in Asian trade only to retreat after the People's Bank of China (PBOC) made moves in Hong Kong markets to support the yuan. The Australian dollar, the main proxy for Chinese sentiment in the G10 list of major developed world currencies, recovered from a four - month  low to stand 0.3 percent higher at $0.6977 . The dollar built on its gains against the yen in early European trade, up 0.3 percent at 117.68 yen.  Earlier on Monday it touched a low of 116.70 yen, the lowest since late August. The euro eased 0.4 percent to $1.0882, still above Friday's low of $1.0803. 

 

 

DAILY FOREX REPORT UPDATES FOR 07 JAN 2016

Rupee pares initial losses, still down 11 paise vs dollar

The rupee pared its initial losses but was still down by 10 paise at 66.70 against the American currency in late-morning deals on sustained bouts of dollar demand from importers amid volatile equities. Earlier, the rupee resumed lower at 66.69 as against last yesterday's closing level of 66.60 at  the Interbank Foreign Exchange (forex) market. Later, it fell on heavy bouts of dollar demand from importers to 66.82 before quoting at 66.70 at 1030 hours. The domestic unit moved in a range of 66.69 and 66.82 during the morning deals. Overseas, the US dollar traded mostly higher against major rivals in early trade, despite the Japanese yen vaulting to a near three-month high against the dollar and multi-month highs versus other currencies as investors sought shelter in low-risk assets after weak economic news from China and a possible nuclear test in North Korea.

 

Offshore Chinese yuan plunges to five year low against dollar

The Chinese yuan plunged to a five-year low in offshore trading and the gap between it and its mainland counterpart widened sharply on Wednesday, reflecting growing expectations of further weakness in the currency as China's economy slows and capital outflows accelerate amid a stock slump. The offshore yuan slumped to 6.6650 against the dollar, the lowest rate since the last quarter of 2010. The onshore yuan rate was 6.5418 against the dollar. The latest trigger for the slump came after the People's Bank of China (PBOC) set the official dollar/yuan midpoint rate at 6.5314, the weakest fixing since 2011. The fix represented a 0.22 percent decline from the previous session, a faster pace than witnessed recently.

Dollar sags vs yen and euro but holds above post-Fed lows

Rupee falls against US dollar
 

The rupee depreciated by 19 paise to 65.86 against the US dollar in early trade on Monday. The domestic currency had closed at 65.67 on Friday, logging its biggest daily gain in two years, following the US Federal Reserve's decision to maintain its ultra-low interest rates for some time. The greenback was seen rising against major global currencies. 

 

The dollar index, which tracks dollar movement against a basket of six major world currencies, stood at 95.12. 

 

In its policy review last week, the US Fed said policymakers continued to see "the risks to the outlook for economic activity and labour market as nearly balanced," but were monitoring 'developments abroad'.

Dollar sags vs yen and euro but holds above post-Fed lows
 

The dollar sagged versus the yen and euro on Monday but held above its recent lows as markets weighed if major central banks might ease policy after the Federal Reserve last week delayed a long-anticipated hike in U.S. interestrates. 

 

Against a basket of six major currencies, the dollar last traded at 95.053, well above Friday's low of 94.063, its lowest level since Aug. 26.The euro edged up 0.2 percent to $1.1321, but remained below Friday's peak of $1.1460. 

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DAILY FOREX REPORT FOR SEPTEMBER 02, 2015

Rupee advances in late morning deals, up 24 paise vs USD
The rupee firmed up further by 24 paise to 66.24 against the US currency in late morning deals following sustained bouts of dollar selling by exporters and banks.

The rupee opened higher at 66.38 per dollar against yesterday's closing level of 66.48 at the Interbank Foreign Exchange (Forex)market.

It gained further to 66.23 on bouts of dollar selling by exporters before quoting at 66.24 per dollar at 1045 hrs. It moved in a range of 66.46 and 66.23 during the morning trade. 

 

Globally, the US dollar was lower in early Asian trade as nervous investors look to upcoming data from China and the United States to gauge whether they need to further wind back carry trades, bets in risk assets funded by these currencies. FOREX TIPS
 

Dollar sags against yen and euro, off 1.5% in August
The dollar eased against the safe haven yen and the low yielding euro on Monday as investors around the world knocked down equities and trimmed bets against currencies popularly used to fund risky carry trades.

The dollar shed 0.4 percent to 121.19 yen, down about 2.2 percent for August but well above a sevenmonth low of 116.15 touched a week ago.

The euro rose 0.5 percent to $1.1236, below last week's high of $1.1715 but still up 2.4 percent for the month. The dollar was up 0.4 percent against the Swiss franc to 0.9657 franc and off 0.3 percent against the pound at $1.5342.

DAILY FOREX TIPS UPDATES FOR AUGUST 13, 2015

Rupee hits 2 year low against US dollar

 

Extending its recent slide, rupee depreciated 75 paise to 64.94 against the US dollar in trade today. This was the lowest level the domestic currency hit since September 2013.
 

Rupee has seen high volatility after a 1.9 percentage point cut in the daily reference rate by the Chinese central bank on Tuesday, in a bid to revive the world'ssecond economy from a sharpest economic slump in about 25 years. On Wednesday, most Asian currencies were trading weak, with Malaysian Ringgit tumbling beyond 4/dollar for first time since 1998

Dollar drops as China move raises doubts over Fed hike timing
The dollar fell 0.6 per cent against a basket of currencies on Wednesday, coming under pressure as Treasury yields dropped on doubts over whether the U.S Federal Reserve will raise interest rates in the wake of China's devaluation of the yuan. 

 

The yuan extended its losss, dragging the growth linked Australian and New Zealand dollars to six year lows with it, while another set of disappointing Chinese data bolstered safe haven currencies such as the yen. 

 

The euro, meanwhile, rose, helped by the unwinding of euro - funded carry trades in the yuan. 

 

The single currency hit a one month high of $1.11385,up 0.8 per cent on the day. The dollar index fell to 96.691, while the greenback shed 0.5 per cent to trade at 124.42 yen.

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DAILY FOREX REPORT FOR AUGUST 07, 2015

Rupee depreciates against US dollar
Rupee depreciated 3 paise to 63.78 against US dollar in early trades today, tracking strong gains in the greenback against major world currencies. Data released overnight showed that the US services sector expanded at its fastest pace in 10 years, raising the chances of rate hike by the Federal Reserve in its September policy review. US Markit services PMI rose to 55.7 in July from June's five month low of 54.8. Dollar index, which tracks the movement of dollar against atrade weighted basket of six major world currencies, stood at 97.85.

Dollar edges down but close to highs, sterling awaits BOE update
The dollar inched lower against a basket of currencies while staying near a more than three month high on Thursday, after US data provided more evidence that the US Federal Reserve could hike interest rates as early as next month. The dollar index, which tracks the greenback against a basket of
six major rivals, was down about 0.2 per cent on the day at 97.799, but remained in sight of the previous session's high of 98.218, its strongest level since April 23. The dollar was a few ticks lower against the yen at 124.790 yen after briefly popping above 125.000 on Wednesday for the first time since early June. It also hit a fresh six year high on the New Zealand dollar, which skidded as low as $0.6490 on Wednesday, but had last recovered to $0.6538.

DAILY FOREX REPORT UPDATES FOR AUGUST 03, 2015

Rupee depreciates against US dollar
Rupee depreciated 4 paise to 64.07 against dollar in early trades today. The domestic unit had ended the preceding session at 64.04 against the American currency.

Data released overnight show that the US economy grew at an annualised rate of 2.3 per cent in the second quarter. The GDP numbers were a tad lower than consensus estimate, but were higher than a growth of 0.60 per cent in the first quarter.

Dollar index, which tracks the movement of dollar against a trade weighted basket of six major world currencies, stood at 97.41, down 0.15 per cent.

Dollar Yen gains as market digests higher core CPI in Japan
The Japanese yen gained on Friday as investors saw the core consumer prices rise in June as positive even as other Japanese data on jobs and household spending was downbeat. USD/JPY traded at 124.00, down 0.12%, while AUD/USD changed hands at 0.7297, up 0.05%. Core consumer prices  gained 0.1% in June yearon year, compared to an expectation for a flat outcome. Japan's unemployment rate came in at 3.4%, a tick higher than the 3.3% seenwhile household spending fell 2.0%, well off a 1.7% gain expected

DAILY FOREX REPORT UPDATES FOR JULY 31, 2015

Rupee depreciates against US dollar

Rupee depreciated 5 paise to 63.96 paise against dollar in early trades on Thursday,  tracking  cues  from  the  US  Federal  Reserve's  policy  statement released overnight.

The two day policy review by the US Fed concluded on Wednesday.

In the statement,  the  Fed  said  that  the  underutilisation  of  labor  resources  has  diminished  since  early  this  year  and  that  inflation  has  continued  to  run  below the Committee's longer run objective.

This has raised chances that the US Fed may start hi king interest rates in the September
policy review.


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DAILY FOREX REPORT UPDATES FOR JULY 22, 2015

Rupee recovers smartly, gains against dollar
Rupee made a smart recovery and hit day's high of 63.57 against US dollar, up 10 paise after falling 9 paise in morning trade. The Indian currency had hit day's low of 63.75 against US dollar.
 

However, dollar was seen strengthening against major world currencies on hopes the recovery in the economy would push the US Federal Reserve (Fed) for a rate hike sooner than later.

Fuelling fears, St Louis Fed President James Bullard on Monday said that there is more than 50-50 chance that the US Fed will raise interest rates in its September policy review.

The domestic currency settled 19 paise lower at 63.66 against the greenback in the preceding session amid strong demand for the US currency from banks and importers

Some respite for commodity currencies, dollar inches higher
The dollar built further on a week of gains due to resurgent expectations for rises in U.S. interest rates on Tuesday reaching a five-week high against the yen and a three month peak against a basket of currencies.

The dollar was steady at 124.30 yen, having hit a five week high of 124.48 late in the Asian session.

The dollar index against a basket of currencies extended this week's three month peak to 98.151.

The U.S. currency has climbed steeply from a low near 120 yen plumbed at the start of the month when angst over the Greek debt crisis and sliding China shares triggered a rush into the safe haven Japanese currency, but the 125 threshold could be a tough ceiling to top.

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