Posts tagged rupee

Weekly currency update June 5, 2010

  • USDINR Update
  • The partially convertible rupee ended at Rs 47.27 per dollar, depreciating about 2% for the week. The rupee weakened as the euro’s weakness triggered a bout of dollar buying by importers, but a stronger performance of the stock markets limited the local currency’s losses.
  • Earlier on Tuesday, the rupee fell the most in at least 15 months, tracking declines in Asian stocks, as weaker- than-expected manufacturing data from China spurred concern that Europe’s financial crisis could derail a nascent global economic recovery.
  • The rupee closed 1.7% lower at 47.155 against the dollar on Tuesday, the biggest decline since 17 February 2009. It slumped 4.3% in May, the worst performance among Asian currencies after South Korea’s won.
  • The euro traded close to a four-year low as the euro zone’s financial problems weighed on sentiment and the dollar rose because of expectations of a strong US employment report.
  • The rupee had fallen 4.3% in May on foreign fund outflows of $2 billion in the month. Foreigners are still net buyers of $4.5 billion worth of shares so far in 2010.
  • The rupee is expected to trade in the 46.75 to 47.00 range during the next week considering no major disturbance in the Euro region and local equity markets remain stable.

Author name:Abhijeet Ahir

Weekly crude oil and currency update May 29, 2010

Crude Oil

Crude oil traded with a negative bias towards the beginning of the week and touched a weekly low of $67.15 per barrel in the near term contract on NYMEX. But thereafter it regained all of the lost ground rising $2.76 on Wednesday and $3.04 on Thursday. Crude prices finally closed the week at $73.97, $3.93 or 5.6% above last week’s close.

The rise was boosted by expectations of higher demand given the three day weekend on account of Memorial Day holiday in US. The Memorial Day also marks the beginning of busy season for motorists as driving demand peaks between June-August. Hurricane season is also round the corner which might disrupt production and interrupt supplies.

Oil inventories for the week ended May 21 rose 2.4 mln barrels but the same had insignificant impact on prices.

Currency: USDINR

The rupee depreciated for the first two trading sessions of the week, before appreciating for the rest of the week, closing at Rs.46.35 per dollar (1.3% lower for week), as risk aversion over the euro zone debt crisis receded, bolstering dollar supplies from local exporters while a rally in domestic shares aided sentiment.

The euro gained on month-end fixing demand for euros and ahead of a long weekend in both the US and UK markets. The dollar index against six majors was down about 0.1%.

The People’s Bank of China said a Financial Times report that the State Administration of Foreign Exchange (SAFE) was concerned about its exposure to euro zone debt was groundless, lifting world stocks.

Authors: Praveen Bajaj, Abhijeet Ahir