TODAY’S FOREX REPORT 18/7/2013

MARKET HEADLINES

 Rupee trims initial gains against dollar; US Fed eyed

Rupee recovers to trade weaker at 59.36/37, off the day’s low of 59.05 hit in early trade and above its close of 59.31/32 on Tuesday as importers and a mid-sized corporate stepped up purchases of the greenback, traders say.The market is also expected to be rangebound ahead of the Federal Reserve chairman’s testimony later in the week. Asian currencies also trading largely unchanged.

Ben Bernanke is set to appear before Congress on Wednesday and Thursday, which could provide clues on the timing of the Fed’s planned reduction in its monthly bond-purchases of $85 billion.

Sterling rises to 2-week high, gilts slide after BoE minutes

Sterling rose a two-week high against the dollar while gilt futures
tumbled on Wednesday after the minutes from the latest Bank of England policy meeting showed all policymakers had voted against further asset purchases.Sterling rose to $1.5247 after the BoE minutes were released from around $1.5110 beforehand. The pan European FTSEuro first 300 index also followed the move down on Britain’s FTSE 100 index, erasing its earlier gains to trade down 0.1 percent at 1,190.44 points by 0842 GMT.

Swiss franc down vs dollar ahead of Bernanke’s testimony

The Swiss franc slipped against the dollar and the euro on Wednesday ahead of US Federal Reserve Chairman Ben Bernanke’s testimony to Congress later in the day.Bernanke is expected to calm the nerves of jittery investors worried about life without the Fed’s bond purchases after he set off a global market sell-off last month when he outlined plans to reduce the quantitative easing program.The franc fell 0.3 percent against the dollar to trade at 0.9415 by 0629 GMT compared to the New York close.

The franc slipped 0.1 per cent against the euro to 1.237.

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