FOREX REPORT

MARKET HEADLINES

Rupee rises to 2-week high of 59.56 vs dollar-
The rupee today appreciated by 11 paise to close at a two-week high of 59.56 against the dollar on fag-end sales of the US currency by exporters amid a strong rally in local equities.

Even as sustained capital inflows supported the rupee gain, a smart recovery in the dollar overseas restricted the local currency’s gains, a forex dealer said.

At the Interbank Foreign Exchange market, the rupee opened lower at 59.79 from the previous close of 59.67 and dropped further to 60.17 on dollar demand from importers, mainly oil refiners. The rupee touched a record low of 61.21 on July 8.

Yuan slips as sentiment towards appreciation weakens
China’s yuan fell against the dollar on Friday as sentiment weakened after the country’s finance minister said that the pace of growth this year could be slower than the government’s target.

Lou Jiwei said that he expects growth to come in at 7 per cent this year, the official Xinhua news agency quoted him as saying in Washington on Thursday, below the official target of 7.5 per cent.

Spot yuan was trading at 6.1402 against the dollar at midday, down 0.08 per cent from Thursday’s close of 6.1352 after the People’s Bank of China (PBOC) set the midpoint at 6.1631, 0.05 per cent weaker than Thursday’s. Spot yuan is now trading 0.37 per cent stronger than the fix, the narrowest the spread has been since Sept. 18 last year.

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