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.

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.

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.

DAILY FOREX REPORT FOR 16 FEB 2016

Rupee opens marginally higher at 68.19 per dollar

The Indian rupee has opened marginally higher at 68.19 a dollar on Monday against Friday's close of 68.23 a dollar. Agam Gupta of Standard Chartered feels USD INR should open broadly unchanged from Friday's close. He expects a rangebound day with importers picking up USD on any dips to Rs 68.00-68.05/USD and exporters are looking to hedge their receivables if it gets an intraday spike to Rs 68.35-68.40/USD. Gupta says global equities ended Friday in the positive and that should keep local
sentiment risk positive for the day. He expects the USD-INR to trade in a Rs 68.00-68.40/USD range for today.

Yuans hits 2016 high against $ after PBOC speaks on FX strategy

The yuan hit a 2016 high on Monday, after the People's Bank of China (PBOC) set its official midpoint rate sharply stronger against the dollar and the central bank governor talked up the currency. The PBOC set the yuan at 6.5118 per dollar prior to the market open on Monday, up from 6.5314 on February 5, the final fix before the weeklong Lunar New Year holiday. The central bank sets a daily midpoint, or reference rate, and allows the yuan to trade 2 percent above or below this point, as the country makes the transition to a market based currency valuation.The spot market opened on Monday at 6.5300 yuan per dollar andthe yuan hit an intraday high of 6.4988 in late morning trade, before trimming some gains; it was changing hands at 6.5020 at midday, up 1.1 percent on the previous close

Rupee recovers ; opens opens higher at 67.78 per dollar

Rupee recovers ; opens opens higher at 67.78 per dollar

The Indian rupee recovered in the early trade on Friday post breaching 68 level in the yesterday's session. It opened higher by 24 paise at 67.78 per dollar versus 68.02 Thursday. 

 

Pramit Brahmbhatt of Veracity said, "A rebound in global as well as domestic equity market will help rupee gain. The range for the USD INR is seen between 67.60-68.10/dollar levels today."

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

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. 

READ MORE : FOREX TIPS

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.

READ MORE : SHARE MARKET TIPS

DAILY FOREX TIPS FOR AUGUST 12, 2015

Rupee depreciates against US dollar
Rupee fell to the lowest in two weeks against the dollar on Tuesday, tracking a stronger greenback.

The rupee weak ened to 64.25 to the dollar, down 38 paise, its lowest since July 27, compared with its previous close of 63.87.

The sharp fall was seen after China's central bank allowed its domestic currency yuan to depreciate almost 2 per cent against the greenback to levels. 

 

last seen three years ago. Following the move, most Asian currencies
witnessed pressure.

Rupee was no exception.Meanwhile, investors were keenly awaiting monthly retail sales data in the US scheduled for Thursday. 

 

A slew of recent upbeat economic data releases in the US have raised hopes that the US Federal Reserve is on track to raise interest rates in its September policy review.

China's spot yuan closes down 1.8 per cent, biggest daily fall on record
China's spot yuan closed down 1.8 per cent on Tuesday, posting its biggest daily drop after the central bank devalued the official midpoint by nearly 2 per cent.

The yuan closed at 6.3231 versus the dollar, weakening from 6.2097 at the closed on Monday. It was the biggest daily per centage fall since China established its foreign exchange market in 1994.

The move by the People's Bank of China's comes after a run of poor economic data. The central bank billed the move as a free market reform but some analysts suspect could be the beginning of a longer slide in the exchange rate

READ MORE : SHARE TIPS

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 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.


READ MORE : FOREX TIPS

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.

 READ MORE : SHARE TIPS