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MARKET HEADLINES

Rupee hits 5-week peak, but off highs on importer dollar demand

The rupee strengthened to a five-week high on Thursday as the RBI’s
measures to drain liquidity started to show impact, although demand for the greenback from importers towards late trade meant the unit closed just marginally stronger.The rupee has now gained for a second session following the Reserve Bank of India’s additional cash draining measures on Tuesday, after its initial steps on July 15 to defend the rupee had failed to have much of an impact.The RBI also paid high yields in its Rs 5,200 crores sale of cash management bills on Thursday, which followed a Rs 12,000 crores sale of treasury bills on Wednesday, showing the central bank’s commitment to drain cash.The partially convertible rupee closed at 59.11/12 per dollar compared with 59.13/14 on Wednesday. The unit rose as high as 58.76, its strongest since June 19.

Sterling dips, UK gilts pare losses after in-line GDP data

Sterling dipped on Thursday while gilts pared losses after data showed the UK economy grew 0.6 per cent in the second quarter of the year, in line with expectations and disappointing some in the market who had positioned for a better number.The pound fell to $1.5331 against the dollar, down from around $1.5371 before the figures were released and staying below Tuesday’s one-month high of $1.5393.Traders also pointed to the fact that the data showed UK gross domestic product remains 3.3 per cent below its peak in the first quarter 2008.British government bond futures pared losses by 20 ticks after the data to stand 4 ticks down on the day at 122.22 at 0831 GMT, erasiing earlier underperformance versus the equivalent German Bund contract. Bund futures pared losses to last trade 5 ticks down on the day at 142.67 compared with 142.58 just before the data.

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.

MARKET HEADLINES

Rupee retraces gains to trade flat on day
The rupee gives up all gains to trade flat on the day at 59.70/71 versus Monday’s close of 59.72/73 as there are no fresh dollars inflows into the market, traders say.There is good demand for the greenback from importers and corporates, with both state-run and foreign banks seen buying the dollar, they added.

The pair is seen moving in a range of 59.40 to 59.90 during the rest of the session. The domestic share market will be watched for cues on foreign fund
flows.

Swiss franc steady vs euro, dollar as Q2 reports flow in

The Swiss franc was steady against the dollar and the euro on Tuesday, with few catalysts seen moving the franc sharply as one third of S&P 500 companies prepare to report second quarter numbers this week.

The franc continues to shadow euro movements closely, as it has broadly done since the Swiss National Bank capped the currency at 1.20 per euro almost two years ago to stave off a recession and deflation.The franc was little moved against the dollar compared to the New York close, trading at 0.9360 by 0710 GMT.

Dollar slips versus yen in Asian trade
The dollar weakened against the yen in Asia Tuesday after poor US
housing data raised the likelihood the Federal Reserve would not wind
back its stimulus programme in the near term.

The greenback fetched 99.46 yen in afternoon Tokyo trade, down from
99.59 yen in New York Monday afternoon and well off the 100-yen levels at the end of last week, while the euro bought 131.26 yen and $1.3198, from 131.33 yen and $1.3186.

On Monday the National Association of Realtors said home US sales fell 1.2 per cent to an annual rate of 5.08 million in June, from a downwardly revised 5.15 million in May. The average analyst estimate was for a rise to a 5.28 million pace in June.

MARKET HEADLINES

Rupee seen stuck in tight band, fresh cues awaited
The rupee is stuck in a tight band, trading marginally weaker on the day at 59.40/41 versus its previous close of 59.35/36 on the back of some demand from importers but volumes low.

Traders say the market awaiting clarity from policymakers following RBI’s last week’s measures to restrict rupee liquidity and raising of short-term funding interest rates.

The pair expected to hold in a 59.30 to 59.60 band during the rest of the session.
Yen rises in choppy trade after Japan PM’s election win

The yen rose on Monday in choppy trading, having dipped initially
after a big win by Japanese Prime Minister Shinzo Abe’s ruling bloc in upper house elections gave Abe a stronger mandate for his reflationary economic policies.

The dollar lost steam after that, however, and later saw a sharp
reversal, falling to as low as 99.60 yen. The dollar last stood at 99.92 yen, down 0.6 per cent from late US trade on Friday.

Yuan firms slightly on 8th anniversary of revaluation

The yuan strengthened slightly in morning trade on Monday, the
eighth anniversary of the currency’s revaluation, but the exchange rate remained well within its 1 per cent daily trading band.

There was no significant reaction in the currency or money markets to the government’s decision on Friday to scrap the floor on commercial bank lending rates.

Spot yuan traded at 6.1369 versus the dollar at midday, up from 6.1379 at Friday’s close.

The People’s Bank of China (PBOC) fixed the official daily midpoint at 6.1721 on Monday morning, with the yuan strengthening from 6.1751 at Friday’s fix.

MARKET HEADLINES

Rupee seen stuck in tight band, fresh cues awaited

The rupee is stuck in a tight band, trading marginally weaker on the day at 59.40/41 versus its previous close of 59.35/36 on the back of some demand from importers but volumes low.

Traders say the market awaiting clarity from policymakers following RBI’s last week’s measures to restrict rupee liquidity and raising of short-term funding interest rates.

The pair expected to hold in a 59.30 to 59.60 band during the rest of the session.

Yen rises in choppy trade after Japan PM’s election win

The yen rose on Monday in choppy trading, having dipped initially after a big win by Japanese Prime Minister Shinzo Abe’s ruling bloc in upper house elections gave Abe a stronger mandate for his reflationary economic policies.

The dollar lost steam after that, however, and later saw a sharp reversal, falling to as low as 99.60 yen. The dollar last stood at 99.92 yen, down 0.6 per cent from late US trade on Friday.

Yuan firms slightly on 8th anniversary of revaluation

The yuan strengthened slightly in morning trade on Monday, the eighth anniversary of the currency’s revaluation, but the exchange rate remained well within its 1 per cent daily trading band.

There was no significant reaction in the currency or money markets to the government’s decision on Friday to scrap the floor on commercial bank lending rates.

Spot yuan traded at 6.1369 versus the dollar at midday, up from 6.1379 at Friday’s close.

The People’s Bank of China (PBOC) fixed the official daily midpoint at 6.1721 on Monday morning, with the yuan strengthening from 6.1751 at Friday’s fix.

MARKET HEADLINES

Rupee near day’s highs; engineering firm outflows
The rupee is close to day’s highs at 59.58/59, off 59.79 day’s lows. It had closed at 59.34/35 on Wednesday.Dealers say that future arbitrage is there in July and August maturity. Some state-run banks have been sellers, which has sparked some rumours of intervention, though there is no big buzz.

Outflows to tune of $200 million from a mid-sized engineering firm spotted, dealers say. India’s GDP will grow 5.6 per cent in 2013/14, says a Reuters poll, with a slow recovery in economy as the RBI will refrain from cutting rates to keep a battered rupee from falling more.

Euro rises to 7-week high against the yen

The euro rose to a 7-week high against the yen on Thursday as hedge funds sold the Japanese currency before Japan’s upper house elections on Sunday, traders said.The euro rose 0.6 per cent to 131.45 yen on trading platform EBS, its highest level since May 31.Recent opinion polls show Prime Minister Shinzo Abe’s ruling bloc on track for a big win. That outcome would give Abe more freedom to push forward his agenda to revive the economy through aggressive monetary easing and hefty government spending, all of which is likely to weigh down on the yen.

Yen slips to 7-week low vs euro, dollar holds to gains

The yen fell on Thursday, dropping to a seven-week low against the euro, as hedge funds sold the currency before Japanese upper house elections on Sunday that would strengthen Prime Minister Shinzo Abe’s position.

Opinion polls show Abe’s ruling bloc on track for a big win lending a rare bout of political stability to Japan.

The euro rose to a seven-week high of 131.47 yen while the dollar gained 0.7 per cent to 100.35 yen. Investors such as hedge funds were cited as buyers of dollar/yen with stop-loss buy orders layered at 100.50 and 101.00 yen, traders said.

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.

MARKET HEADLINES

Rupee off lows on dollar selling by large US banks

Rupee is off lows on some US dollar selling by a large US bank as well a large state-run bank, dealers say.

The rupee is at 59.90/91, off 60.0750 highs, versus its previous close of 59.56/57.

“A large US bank was selling around 59.90/91 levels,” says a senior dealer.

Local stocks also in positive zone, 0.5 per cent higher.

Sterling steady, investors say BoE minutes to cement bearish tone

Sterling was steady on Monday, holding above recent lows against the dollar and the euro, with investors wary of buying the pound while monetary policy in Britain is expected to remain easy.

The Bank of England (BoE) will release the minutes of its latest Monetary Policy Committee meeting on Wednesday. They are likely to retain a dovish bias after the Bank said two weeks ago that a recent rise in UK gilt yields was unwarranted.

Sterling was flat at $1.5095 holding above the three-year low of $1.4814 struck last Tuesday. Chart support is cited at $1.5077, its July 5 high. Against the euro, sterling was flat at 86.45 pence per euro.

Swiss franc idles against dollar, euro before economic data

The Swiss franc was virtually unchanged against the dollar and the euro on Monday, after data from China came in as expected and markets awaited testimony from US Federal Reserve Chairman Ben Bernanke later this week.

Closer to home, currency dealers are awaiting Swiss producer price data at 0715GMT on Monday, and Swiss trade data later this week.

The franc was flat against the dollar to trade at 0.9464 by 0627 GMT compared to the New York close.

The franc was steady against the euro at 1.2371.

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.

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.