Rupee trims early gains, down 1 paisa vs dollarThe rupee trimmed its initial gains and quoted down by 1 paisa to 61.64 against the US currency in late morning deals today on mild bouts of dollar demand from importers.
Earlier, the rupee resumed slightly higher at 61.62 per dollar as against yesterday close of 61.63 at the Interbank Foreign Exchange market.
Later, it traded strong at 61.50 on sustained dollar selling by exporters before quoting at Rs 61.64 at 1100 hours.
It hovered in the range of 61.50-61.64 per dollar during the morning trade. Rallying equities and heavy capital inflows capped the rupee losses, dealers said.
Euro braces for ECB moves, rate cut jolts Canadian dollarThe euro held steady on Thursday as investors awaited details of a sovereign bond-buying programme that the European Central Bank is seen likely to announce later in the day.
Market expectations are sky-high for the ECB to unveil a large-scale programme of quantitative easing.
A euro zone source said on Wednesday the ECB's Executive Board has proposed a programme that would enable the bank to buy 50 billion euros ($58.05 billion) in bonds per month starting in March.
Whatever the outcome, traders said there is sure to be plenty of volatility in euro/dollar.
The euro last traded near $1.1607, little changed on the day. Since reaching an 11-year trough of $1.14595 on Friday, the common currency has been drifting in a slim range as investors wait to see how aggressive the central bank might be.
Euro drops below $1.18 to hit 9-year low
The euro extended losses on Thursday to hit a 9-year low against the dollar, as investors ramped up bets the European Central Bank was getting closer to adopting a large scale quantitative easing programme to ward off deflation.A slump in German industrial orders in November reinforced bearish views of the single currency. The euro fell past reported option barriers at $1.18 to hit a low of $1.17915 on trading platform EBS. It was the single currency's lowest level since late December 2005. Data on Wednesday showed consumer prices in the euro zone fell in December from a year earlier, marking the first annual decline since 2009. That cemented expectations the ECB will probably announce a bond buying programme at its policy meeting on Jan. 22.
Dollar slips vs yen on risk aversion, euro fragile
The dollar slipped against the safe-haven yen on Tuesday as investor risk aversion mounted on the back of a sharp drop in equities. The battered euro caught some relief as the dollar stumbled against the yen, helping the common currency pull back a bit from a nine-year trough. Persistent weakness in oil prices and uncertainly over the Greek political situation have spooked investors, sending Wall Street to its biggest one-day fall in about three months. As the region's equities floundered -- Tokyo's Nikkei sank 3 per cent -- the resulting flight to safety drove investors into the yen. As a result, the dollar dipped to as low as 118.65 yen from Monday's high of 120.68, moving further away from a seven-year peak of 121.86 set last month. A sharp fall in US Treasury yields also undermined the dollar versus the yen, with 10-year yields diving 14 basis points in just two sessions. "The dollar/yen surge late last month that ignored some weak US data was overdone, it was led by sentiment and not based on solid factors. So it's natural for players to adjust positions when faced by lower oil and tumbles in European, US and now Japanese equities," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo. "But the key theme of monetary policy divergence remains firmly in place, and I don't see the dollar declining much more against the yen," Murata said. The euro last traded at $1.1961, up 0.3 per cent, after dipping into the $1.1860 area on Monday, reaching depths not seen since early 2006. The euro's bounce, however, is expected to be limited as the prospect of more policy easing from the European Central Bank has grown ever stronger. Adding pressure on the ECB to do more, German inflation slowed to its lowest in over five years in December. The data came just days after ECB President Mario Draghi said the risks were growing that inflation would stay too low for too long. Constant chatter of a Greek exit from the euro zone further sapped confidence in the currency. "I believe EUR$ will continue to fall this month as the market moves to near 100 per cent certainty of ECB QE on January 22," analysts at CitiFX wrote in a note to clients, attributing those comments to the bank's head New York spot trader. The euro slid to a two-month low of 142.020 yen. A slide in crude oil prices hurt commodity currencies such as the Norwegian crown, which hovered near a three-week low of 7.6764 crowns per dollar. Buffeted by a free fall in oil prices, the Norwegian currency had slid to a 12-year low of 7.8558 crowns against the dollar in December. Brent crude oil was stuck near a 5-1/2-year trough of $52.66 per barrel hit overnight as growth in supplies showed no signs of abating in an already saturated market. The Australian dollar, another commodity currency, got a breather after data showed Australia's trade deficit was not as big as feared.
Rupee down 21 paise against dollar in early tradeThe rupee lost 21 paise to Rs 63.50 against the US dollar in early trade today at the Interbank Foreign Exchange due to rise in the greenback's value against other currencies overseas. Dealers attributed the fall in rupee to dollar's gains against the euro which fell to a nine-year low; but a higher opening in the domestic stock market limited the fall of the domestic currency. The Indian rupee had ended 6 paise higher at 63.29 against the greenback on Friday, helped by selling of dollars by banks and exporters amid hopes of more foreign capital inflows into the equity market. Meanwhile, The benchmark BSE\ Sensex regained the 28,000-mark by rising 122.45 points, or 0.44 per cent, to 28,010.35 in early trade today.
Euro slides to 9-year low; Asian shares, oil wobbleThe euro hit a nearly nine-year low versus the dollar on Monday as investors bet on quantitative easing by the European Central Bank while soft manufacturing surveys pushed down shares and sent oil prices to 5 1/2-year lows. European shares are expected to dip, with Britain's FTSE seen falling by up to 0.4 per cent. Germany's DAX and France's CAC are both seen falling as much as 0.2 per cent. The euro fell to as low as $1.18605, its weakest level since March 2006, having fallen below an important support at $1.20. The common currency last traded at $1.1926, down 0.6 per cent from late US trade on Friday. In an interview with German financial daily Handelsblatt published on Friday, ECB President Mario Draghi said the risk of the central bank not fulfilling its mandate of preserving price stability was higher now than half a year ago.
"The market took his comments to mean that he is ready to adopt quantitative easing," said Shin Kadota, chief forex strategist at Barclays in Tokyo. Economists forecast that Wednesday's euro zone inflation data will show that in December prices fell 0.1 per cent, the first decline since 2009. That should fan expectations the ECB could ease its policy as soon as Jan. 22, when it holds its first policy meeting this year. Also underscoring the pressure on central banks to implement more stimulus, business surveys last week showed factories struggled to maintain growth across Europe and Asia. Even in the United States, which is seen as one bright spot in the global economy, the pace of manufacturing growth slowed more than expected in December.
MARKET HEADLINES
Rupee up 8 paise against dollar in early tradeThe rupee recovered by 8 paise to 61.27 against the US dollar in early trade today at the Interbank Foreign Exchange market on fresh selling of the American currency. Besides strengthening of the euro and yen against the dollar in overseas market supported the rupee, but a lower opening in the domestic equity market capped gains, forex dealers said. The rupee had lost 30 paise to close at 61.35 in the previous session on Friday on fresh demand for the US currency from banks and importers due to firm dollar overseas and sharp fall in local equities.The benchmark BSE Sensex fell by 159.35 points, or 0.61 per cent, to 26,138.03 in early trade today.
Rupee down 30 paise at 61.35 vs dollarSnapping a four-day gaining spree, the rupee today fell by 30 paise to close at 61.35 against the dollar on fresh demand for the US currency from banks and importers due to firm dollar overseas and sharp fall in local equities. The local currency rupee resumed lower at 61.15 per dollar as against yesterday's closing level of 61.05 at the Interbank Foreign Exchange ( Forex) and dropped further to 61.36 per dollar before concluding the day at 61.35 per dollar, a loss of 30 paise or 0.49 per cent.
It moved in a range of 61.11 and 61.36 per dollar during the day. "Rupee traded weak today taking cues from strong dollar overseas and weak local equities. After depreciating for four continuous weeks, rupee posted its first weekly gain this week," said Pramit Brahmbhatt, CEO, Veracity Group.
MARKET HEADLINES
- Rupee hits day's high of 59.14 against US dollar
The rupee strengthened to 59.14 against the US dollar in intraday 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 after the European Central Bank unveiled a batch of measures to kick start the stuttering eurozone economy also supported the rupee's rise, they added.
The rupee closed flat at 59.33 against the dollar in lacklustre trade yesterday on alternate bouts of buying and selling as investors awaited for European Central Bank policy decision.
- Sterling climbs against Euro on diverging policy outlooks
Sterling rose against the euro on Friday, climbing towards 18-month highs hit a day earlier, with diverging interest rate outlooks expected to underpin the British currency in the near term.
While the European Central Bank declined to rule out quantitative easing on Thursday after imposing negative rates on excess cash parked with it, the Bank of England is likely to raise interest rates early
next year.
That expectation has helped drive the pound 10 per cent higher against a basket of currencies over the past year.
The euro was down 0.15 per cent at 81.10 pence, having hit 80.64 pence - its lowest since December 2012 - on Thursday after the ECB announced a series of policy-easing measures including rate cuts.
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Euro braces for ECB moves, rate cut jolts Canadian dollar
