TODAY’S FOREX REPORT

MARKET HEADLINES

Rupee up 24 paise vs US dollar in early trade:

The rupee today rose by 24 paise to 59.41 in early trade at the Interbank Foreign Exchange market as the dollar weakened against other major rivals overseas after US Federal Reserve Chairman Ben Bernanke said its huge stimulus programme would stay in place for some time.The rupee had gained 49 paise, the most since June 28, to close at 59.65 against dollar in yesterday’s trade, after the RBI and Sebi took steps to curb volatility.Meanwhile, the BSE benchmark Sensex rose by 290.26 points, or 1.50 per cent, to 19,584.38 in early trade today.

 

Dollar tumbles after dovish Bernanke trip up bulls :

The dollar tumbled on Thursday after dovish comments from Federal Reserve Chairman Ben Bernanke forced traders to trim their long positions on the greenback, as markets reassessed expectations that the Fed would start to reduce stimulus as early as September.

Bernanke’s comment came during early Asian trading hours, when market liquidity is at its lowest, promoting a rapid barrage of stop-loss selling of the dollar, possibly exaggerating price action, traders said.

The euro roared to a three-week high of $1.32085 at one stage, up more than 3 per cent from Wednesday’s low of $1.2765. It easily spiked above $1.3010, the 38.2 per cent retracement of its June-July fall, then $1.3167, the 61.8 per cent level.The euro last traded at $1.3090, up 0.9 per cent on the day. The dollar also fell against the yen, dropping to a two-week low of 98.20 yen, though it held above a key support from the cloud bottom on the daily Ichimoku charts at 98.155.

 

 

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