Friday, May 25, 2012

MCX-SX CURRENCTY TIPS 25 MAY 2012


RUPEE: RECOUPS ABOVE RS 56/$
DATE: 25/05/2012       
Rupee commenced below the Rs 56 per dollar mark for the second day on Friday, May 25, 2012 reversing gains registered late yesterday, as global risk aversion continued to weigh down sentiments. The domestic currency staged a rebound for the first time in four days against the dollar on Thursday after the central bank governor did not rule out selling dollars directly to oil importers. Making dollars available for oil companies would remove a sizeable source of demand for the greenback from the market, and help support the rupee. India is caught in a vicious cycle of rising fuel import costs because of a weak rupee, which swells its fiscal and current account deficits. Rupee opened lower by 38 paise early today at 56.02, but was seen trimming early losses to hit a high of 55.70 so far during the day. In the spot currency market, the Indian unit was last seen trading at 55.77, down by around 13 paise or 0.22% as compared to previous close at 55.64.

Investors across the globe are rattled by worries over lack of growth in the euro area, the fragile situation of the region's banking system and a potential messy Greek exit from the single currency bloc. The euro hovered near two-year lows against the dollar on Friday, weighed down by weak German manufacturing data which showed that no European state is immune from the ongoing debt crisis. The euro was quoting at around 1.2536, close to its low of $1.2515 seen yesterday, its lowest level since July 2010. The US dollar in the meanwhile, has been the big winner with its index against a basket of major currencies edging up to 82.398, its highest since September 2010.

Domestic key benchmark indices edged lower in early trade after oil secretary G C Chaturvedi on Thursday, that the empowered group of ministers (EGoM) that would decide raising diesel, kerosene and cooking gas rates is unlikely to meet on Friday, 25 May 2012. Weakness in Asian stocks also weighed on sentiment. Most Asian stocks declined on Friday amid uncertainty over the European debt crisis and the future path of Chinese growth.

Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 105.73 crore on Thursday, 24 May 2012, as per provisional figures. At the time of writing, the BSE Sensex was down 82.14 points or 0.51% to 16,140.16 whereas the S&P CNX Nifty was down 24.80 points or 0.50% to 4,896.

In the domestic currency futures market on the NSE, the forwards month '29 May 12' contract opened at 55.91 on Friday, May 25, 2012 higher than the spot market rupee. The contract hit an intraday high at 56.09 and registered a low at around 55.69 so far during the day. At the time of writing, the NSE May 2012 USD/INR contract was trading at around 55.73, higher around 1 paise or 0.02% as compared to previous close at 55.72.
 

Date
USD
GBP
EURO
YEN
24-MAY-12
56.29
88.26
70.82
70.81
% Change*
-0.64
-0.12
0.09
-0.70
*As against previous working day


                                                                                                                             
POWERED BY: COMMODITY INSIGHTS
www.goldennifty.com

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