9 Year Highs for the Indian Rupee
The rupee closed at a nine-year high of 40.45 against the dollar on Wednesday on the back of rising stock indices. Bond prices rose by 45 paise, bolstered by strong liquidity conditions.
The rupee opened the day at 40.56/57 levels against the dollar, but came off the 40.50-mark on heavy dollar-selling by multinational banks and a large corporate. This is the strongest close for the rupee since May 1998. However, the domestic currency did rise to an intra-day high of 40.28 levels against the greenback in June 2007. The local currency drew its support from the Sensex, which rose to a new high of 14868 points.
Even as the Reserve Bank of India ( Euro / Yen / Rupee) did intervene to prevent the rupee from rising too much in a single session, state-owned banks did display some resistance to purchase dollars below 40.50 levels. There was also demand for dollars from oil companies.
A senior treasury official at a private sector bank said that if there is no sustained intervention by RBI on Thursday, the local currency could grow stronger and may even rise to 40.30 levels versus the dollar.
Tracking a stronger rupee, premia on forward contracts, too, continued to be low. The yield on the one-month premia ended at 0.95%, while that on the six-month premia ended at 2.09% (2.13%) levels. The yield on the
12-month contract closed at 2.18% (2.26%).
On the government bond market, prices rose by more than 40 paise, drawing comfort from the abundant cash flows in the system. The yield on the benchmark paper, the 7.49% bond maturing in 2017, ended at 8.03%, down from the previous close of 8.09%.
RBI set a cut-off yield of 6.19% on the 91-day treasury bills, issued worth Rs 500 crore. In the last week’s auction, RBI had fixed the 91-day t-bill’s cut-off at 7.39%. Similarly, the central bank fixed the cut-off yield of the 364-day t-bills worth Rs 1,000 crore at 7.16%. Yields were at their lowest since late April since tradersanticipated no more rate hikes at the quarterly policy review later this month.
Cash flows in the system have been on the rise since the central bank has been intervening on a sustained basis in the market. The central bank received bids worth Rs 92,755 crore at the two sessions of liquidity adjustment, but accepted bids worth only Rs 2,987 crore.
Rupee today broke the psychological barrier of 40.50 largely, benifiting from enormous inflows and the Reserve Bank of India staying away from the scene to facilitate the currency's gain.
The U.S. currency showed a mixed performance against its Southeast Asian counterparts on Wednesday. The Greenback drifted higher versus the Malaysian Ringgit, but it dropped against the Thai Baht and the Hong Kong dollar. On the other hand, the Greenback largely showed choppy trading versus the Singapore dollar.
Against the Indian Rupee, the Greenback slipped and touched the one month low of 40.32. However, the Greenback ticked higher against its Indonesian, Philippine and the South Korean counterparts.
Against the Singapore dollar, the U.S. currency weakened slightly in the early Asian deals on Wednesday. At about 9:15 pm Eastern Time Tuesday, the pair bounced back completely and then showed a choppy trend.
In the early Asian deals on Wednesday, the U.S. currency trended lower versus the Hong Kong dollar. The pair touched the 2-week low of 7.8102 at 10:30 pm Eastern Time Tuesday. Thereafter, the Greenback picked up some pips and moved sideways.
The U.S. dollar lost ground against the Thai Baht during the early Asian session on Wednesday. After hitting a low of 34.19 by about 10:00 pm ET the pair followed a sideways movement.
The U.S. dollar made advances versus the Malaysian Ringgit in the early Asian deals on Wednesday. The uptrend helped the pair to fetch a high of 3.4640 at 10:35 pm Eastern Time Tuesday. Soon after, the dollar gave back some of its gains.
During the early Asian session on Wednesday, the U.S. dollar gained ground against its Indonesian counterpart and collected as much as 0.9040 at about 11:00 pm ET on Tuesday. But the pair gave back most its gains thereafter and touched 0.9015 within half an hour. The dollar then traded sideways between 0.9015 and 0.9023.
After falling briefly, the U.S. currency rallied versus the Philippine Peso in the early Asian deals on Wednesday. The Greenback hit as high as 46.05 by about 11:35 pm ET Tuesday, but it moved in an opposite direction thereafter. Currently the pair is holding steady at 45.85.
( Euro / Yen / Rupee)
Against the Indian Rupee, the U.S. dollar drifted down during the early Asian session on Wednesday. The downtrend pushed the dollar to touch the 1-month low of 40.32 at 9:20 pm ET Tuesday. The pair then held steady but it strengthened slightly within two hours and fetched 40.59 by about 11:40 pm ET. Lately the dollar has been losing the recent gains.
In the early Asian session on Wednesday, the U.S. currency traded higher versus the South Korean Won. The pair hit as high as 921.40 by about 11:00 pm ET Tuesday. The Greenback then reversed most of its gains and it is currently trading at 918.30.
Australian Dollar Advances Against Majors Amid RBA Rate Decision []
Wednesday, July 04, 2007 1:31:25 AM - The Australian dollar advanced against the other major currencies during the early Asian deals on Wednesday. This came amid the release of the Reserve Bank of Australia's rate decision. As widely expected, the Reserve Bank of Australia left its cash rate target unchanged at 6.25%.
The Australian trade balance for May and the AiG performance of service index for June which were also released during the session are likely to have an effect on trading in the major Aussie pairs.
However, during the late Tuesday New York deals, the Aussie largely moved sideways against the Canadian dollar, but it ticked up slightly versus the other majors.
The Euro-Zone PMI services for June and the retail sales data for May are the key economic events expected during the European session. The US markets are closed on Wednesday on behalf of the Independence day holiday.
On late Tuesday in New York, the Australian dollar traded slightly higher versus the U.S. currency, but the gains were given back at 7:10 pm ET. However, at about 9:30 pm Eastern Time, following the release of the RBA rate decision, the Aussie spiked higher and fetched high of 0.8584 by about 11:55 pm ET. Thereafter, the pair traded sideways and as of 1:30 am ET Wednesday, it was quoted at 0.8574.
Against the Euro, the Australian dollar drifted up during late New York trading on Tuesday. At about 7:10 pm Eastern Time, the Aussie slid briefly but it rebounded soon after and strengthened further. This was likely influenced by the RBA's rate decision. Currently the Aussie has been continuing its uptrend and collected 1.5880 as of 1:30 am ET Wednesday.
The Aussie moved sideways versus the Canadian dollar on late Tuesday in New York. The pair extended the same trend until the RBA rate decision was released during the early Asian deals on Wednesday. Amid the release, the pair ticked higher and thus it climbed from 0.9064 to 0.9094. The Aussie then shed a few pips and as of 1:30 am Eastern Time, it was worth 0.9087.
During late Tuesday in New York, the Australian dollar showed strength against its Japanese counterpart. However, at about 7:10 pm ET, the pair declined slightly and then followed a sideways movement. This came ahead of the release of the RBA rate decision. Following the release, the Aussie reversed the recent losses completely and traded further higher. As of 1:30 am Eastern Time Wednesday, the pair fetched 104.98.
Rupee ended at 40.44/45, gaining 10 paise from the previous close of 40.54 per US currency and is likely to surge further unless Reserve Bank gets into the market, dealers said.
''RBI didnot intervene in the market as it did in the past few consecutive days. The unit may cross the 40.00 mark in coming one month if the Central Bank goes ahead with this stand,'' said Paresh Nayar, Chief Forex Dealer, Development Credit Bank.
Rupee opened at 40.55/57 in the morning, nearly flat to yesterday's close and went down to 40.58 by noon but later gained immensely from inflows and a weak dollar.
''The weak US currency and abstinence of Reserve Bank from intervening on Rupee has kept the unit as the best performing Asian Currency. Rupee's move in coming sessions will be in line with the government's policy,'' said K Dhanasekhar, Senior Forex Dealer, Canara Bank.
Rupee also drew correlation from the boom in indices which bettered by 73.73 points today to 14,880.24, sources said.
Forward premia continues to remain at the lower end as six month premia ended at 2.15(2.13) and annualised premia at 2.23(2.26).
( Euro / Yen / Rupee)
Meanwhile, Rupee has bettered performance against major currencies. Against Euro it ended at 55.03(55.26) per unit each, at 81.50(81.93) against Pound Sterling while Japanese Yen was quoted at 33.00(33.68) per 100 units each.
Reserve Bank of India today fixed the reference rate at Rs 40.49 per US dollar, up by nine paise from its yesterday's rate of Rs 40.58 per USD.
For the past few weeks, the central bank has only been using government bonds and t-bills to absorb the excess cash flows. It has not issued any bonds under the market stabilisation route.
All this led to extremely low rates in the inter-bank call market and the CBLO market. Call rates ended in a range of 0.50-0.75% while CBLO rates closed at 0.06%. Some stray deals occurred at 0.01% also in the call market
The rupee opened the day at 40.56/57 levels against the dollar, but came off the 40.50-mark on heavy dollar-selling by multinational banks and a large corporate. This is the strongest close for the rupee since May 1998. However, the domestic currency did rise to an intra-day high of 40.28 levels against the greenback in June 2007. The local currency drew its support from the Sensex, which rose to a new high of 14868 points.
Even as the Reserve Bank of India ( Euro / Yen / Rupee) did intervene to prevent the rupee from rising too much in a single session, state-owned banks did display some resistance to purchase dollars below 40.50 levels. There was also demand for dollars from oil companies.
A senior treasury official at a private sector bank said that if there is no sustained intervention by RBI on Thursday, the local currency could grow stronger and may even rise to 40.30 levels versus the dollar.
Tracking a stronger rupee, premia on forward contracts, too, continued to be low. The yield on the one-month premia ended at 0.95%, while that on the six-month premia ended at 2.09% (2.13%) levels. The yield on the
12-month contract closed at 2.18% (2.26%).
On the government bond market, prices rose by more than 40 paise, drawing comfort from the abundant cash flows in the system. The yield on the benchmark paper, the 7.49% bond maturing in 2017, ended at 8.03%, down from the previous close of 8.09%.
RBI set a cut-off yield of 6.19% on the 91-day treasury bills, issued worth Rs 500 crore. In the last week’s auction, RBI had fixed the 91-day t-bill’s cut-off at 7.39%. Similarly, the central bank fixed the cut-off yield of the 364-day t-bills worth Rs 1,000 crore at 7.16%. Yields were at their lowest since late April since tradersanticipated no more rate hikes at the quarterly policy review later this month.
Cash flows in the system have been on the rise since the central bank has been intervening on a sustained basis in the market. The central bank received bids worth Rs 92,755 crore at the two sessions of liquidity adjustment, but accepted bids worth only Rs 2,987 crore.
Rupee today broke the psychological barrier of 40.50 largely, benifiting from enormous inflows and the Reserve Bank of India staying away from the scene to facilitate the currency's gain.
The U.S. currency showed a mixed performance against its Southeast Asian counterparts on Wednesday. The Greenback drifted higher versus the Malaysian Ringgit, but it dropped against the Thai Baht and the Hong Kong dollar. On the other hand, the Greenback largely showed choppy trading versus the Singapore dollar.
Against the Indian Rupee, the Greenback slipped and touched the one month low of 40.32. However, the Greenback ticked higher against its Indonesian, Philippine and the South Korean counterparts.
Against the Singapore dollar, the U.S. currency weakened slightly in the early Asian deals on Wednesday. At about 9:15 pm Eastern Time Tuesday, the pair bounced back completely and then showed a choppy trend.
In the early Asian deals on Wednesday, the U.S. currency trended lower versus the Hong Kong dollar. The pair touched the 2-week low of 7.8102 at 10:30 pm Eastern Time Tuesday. Thereafter, the Greenback picked up some pips and moved sideways.
The U.S. dollar lost ground against the Thai Baht during the early Asian session on Wednesday. After hitting a low of 34.19 by about 10:00 pm ET the pair followed a sideways movement.
The U.S. dollar made advances versus the Malaysian Ringgit in the early Asian deals on Wednesday. The uptrend helped the pair to fetch a high of 3.4640 at 10:35 pm Eastern Time Tuesday. Soon after, the dollar gave back some of its gains.
During the early Asian session on Wednesday, the U.S. dollar gained ground against its Indonesian counterpart and collected as much as 0.9040 at about 11:00 pm ET on Tuesday. But the pair gave back most its gains thereafter and touched 0.9015 within half an hour. The dollar then traded sideways between 0.9015 and 0.9023.
After falling briefly, the U.S. currency rallied versus the Philippine Peso in the early Asian deals on Wednesday. The Greenback hit as high as 46.05 by about 11:35 pm ET Tuesday, but it moved in an opposite direction thereafter. Currently the pair is holding steady at 45.85.
( Euro / Yen / Rupee)
Against the Indian Rupee, the U.S. dollar drifted down during the early Asian session on Wednesday. The downtrend pushed the dollar to touch the 1-month low of 40.32 at 9:20 pm ET Tuesday. The pair then held steady but it strengthened slightly within two hours and fetched 40.59 by about 11:40 pm ET. Lately the dollar has been losing the recent gains.
In the early Asian session on Wednesday, the U.S. currency traded higher versus the South Korean Won. The pair hit as high as 921.40 by about 11:00 pm ET Tuesday. The Greenback then reversed most of its gains and it is currently trading at 918.30.
Australian Dollar Advances Against Majors Amid RBA Rate Decision []
Wednesday, July 04, 2007 1:31:25 AM - The Australian dollar advanced against the other major currencies during the early Asian deals on Wednesday. This came amid the release of the Reserve Bank of Australia's rate decision. As widely expected, the Reserve Bank of Australia left its cash rate target unchanged at 6.25%.
The Australian trade balance for May and the AiG performance of service index for June which were also released during the session are likely to have an effect on trading in the major Aussie pairs.
However, during the late Tuesday New York deals, the Aussie largely moved sideways against the Canadian dollar, but it ticked up slightly versus the other majors.
The Euro-Zone PMI services for June and the retail sales data for May are the key economic events expected during the European session. The US markets are closed on Wednesday on behalf of the Independence day holiday.
On late Tuesday in New York, the Australian dollar traded slightly higher versus the U.S. currency, but the gains were given back at 7:10 pm ET. However, at about 9:30 pm Eastern Time, following the release of the RBA rate decision, the Aussie spiked higher and fetched high of 0.8584 by about 11:55 pm ET. Thereafter, the pair traded sideways and as of 1:30 am ET Wednesday, it was quoted at 0.8574.
Against the Euro, the Australian dollar drifted up during late New York trading on Tuesday. At about 7:10 pm Eastern Time, the Aussie slid briefly but it rebounded soon after and strengthened further. This was likely influenced by the RBA's rate decision. Currently the Aussie has been continuing its uptrend and collected 1.5880 as of 1:30 am ET Wednesday.
The Aussie moved sideways versus the Canadian dollar on late Tuesday in New York. The pair extended the same trend until the RBA rate decision was released during the early Asian deals on Wednesday. Amid the release, the pair ticked higher and thus it climbed from 0.9064 to 0.9094. The Aussie then shed a few pips and as of 1:30 am Eastern Time, it was worth 0.9087.
During late Tuesday in New York, the Australian dollar showed strength against its Japanese counterpart. However, at about 7:10 pm ET, the pair declined slightly and then followed a sideways movement. This came ahead of the release of the RBA rate decision. Following the release, the Aussie reversed the recent losses completely and traded further higher. As of 1:30 am Eastern Time Wednesday, the pair fetched 104.98.
Rupee ended at 40.44/45, gaining 10 paise from the previous close of 40.54 per US currency and is likely to surge further unless Reserve Bank gets into the market, dealers said.
''RBI didnot intervene in the market as it did in the past few consecutive days. The unit may cross the 40.00 mark in coming one month if the Central Bank goes ahead with this stand,'' said Paresh Nayar, Chief Forex Dealer, Development Credit Bank.
Rupee opened at 40.55/57 in the morning, nearly flat to yesterday's close and went down to 40.58 by noon but later gained immensely from inflows and a weak dollar.
''The weak US currency and abstinence of Reserve Bank from intervening on Rupee has kept the unit as the best performing Asian Currency. Rupee's move in coming sessions will be in line with the government's policy,'' said K Dhanasekhar, Senior Forex Dealer, Canara Bank.
Rupee also drew correlation from the boom in indices which bettered by 73.73 points today to 14,880.24, sources said.
Forward premia continues to remain at the lower end as six month premia ended at 2.15(2.13) and annualised premia at 2.23(2.26).
( Euro / Yen / Rupee)
Meanwhile, Rupee has bettered performance against major currencies. Against Euro it ended at 55.03(55.26) per unit each, at 81.50(81.93) against Pound Sterling while Japanese Yen was quoted at 33.00(33.68) per 100 units each.
Reserve Bank of India today fixed the reference rate at Rs 40.49 per US dollar, up by nine paise from its yesterday's rate of Rs 40.58 per USD.
For the past few weeks, the central bank has only been using government bonds and t-bills to absorb the excess cash flows. It has not issued any bonds under the market stabilisation route.
All this led to extremely low rates in the inter-bank call market and the CBLO market. Call rates ended in a range of 0.50-0.75% while CBLO rates closed at 0.06%. Some stray deals occurred at 0.01% also in the call market
Labels: dollar, euro, exhange rate, forex, gold, indian, rupee, united states, us, yen
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