TODAY’S FOREX REPORT 25/7/2013

MARKET HEADLINES

Rupee at one-week high on RBI measures
The rupee was trading at 59.20/21, after touching 59.1650, its weakest since July 17, and down from its close of 59.76/77 on Tuesday on the back of central bank measures to boost the local currency by
tightening liquidity.The Reserve Bank of India took new steps to support the rupee, by further reducing banks’ access to funds, signalling it will stay the course with its defence of the currency despite risks to economic growth.However, traders say state-run banks continue to buy dollars with importer demand staying strong.

China’s yuan steadies at one-week high, PMI checks gains

The Chinese yuan steadied at a one-week high against the US dollar on
Wednesday following a stronger daily fixing, but weak manufacturing
data and tighter money market conditions checked gains.By midday, the spot currency was trading at 6.1367 per dollar, slightly above Tuesday’s close of 6.1374.Activity in China’s vast manufacturing sector slowed to an 11-month low in July as new orders faltered and the job market weakened, a preliminary survey showed on Wednesday, suggesting the world’s second-largest economy was still losing momentum.On Wednesday, the PBOC fixed the daily yuan midpoint stronger versus the US dollar for a third consecutive day at 6.1695

US dollar rises in Asian trading
The dollar strengthened in thin Asian trade Wednesday, rebounding from losses in New York fuelled by a weak US manufacturing report, while a consumer confidence spike supported the euro.The greenback fetched 99.72 yen, compared with 99.48 yen in New York Tuesday afternoon although it is still well down from the 100-yen levels seen at the end of last week.The euro bought 131.73 yen and $1.3207, from 131.53 yen and $1.3222, after data showed eurozone consumer confidence jumped in July to its highest level in almost two years.

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