RUPEE: EXTENDS WEAKNESS
DATE: 21/06/2012
Rupee extended weakness on Thursday, June 21, 2012, commencing trade below the R 56 per dollar mark and approaching a record low of 56.52 hit on May 31 after the Reserve Bank of India kept interest rates on hold raising worries about economic growth prospects. The domestic currency opened lower by 22 paise at R. 56.35 to a dollar and fell further to touch a low of 56.48 so far during the day. Domestic equities also remained choppy trading close to the red line. Regional share markets also fell broadly after the Federal Reserve ramped up monetary stimulus by expanding "Operation Twist", but disappointed some investors who had been hoping for more aggressive measures. In the spot currency market, the Indian unit was last seen trading at 56.37, down around 24 paise or 0.43% as compared to previous close at 56.13.
The US dollar continued to hold above a one-month low against a basket of major currencies on Thursday even after the Federal Reserve delivered another dash of monetary stimulus and said it was ready to do more if necessary. The Fed stopped short of launching a more aggressive programme of buying bonds outright, or QE3, that came below market expectations. The central bank expanded its "Operation Twist" by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of the year. The euro dipped to $1.2659, having risen to a high of $1.2742 the previous day, near a one-month peak of $1.2748 set on Monday. The pair was last seen quoting at 1.2677. Meanwhile, the dollar index stood at 81.588, staying above a one-month low of 81.186 hit earlier in the week.
Key benchmark indices extended initial losses to hit fresh intraday lows in morning trade. Weak Asian stocks hunt sentiment adversely. Most Asian stocks dropped as the latest data showed manufacturing activity cooling further in China and after investors hoping for major new Federal Reserve stimulus were disappointed. Foreign institutional investors (FIIs) bought Indian shares worth a net R 119.58 crore on Wednesday, 20 June 2012, as per provisional data from the stock exchanges. At the time of writing, the BSE Sensex was down 64.05 points or 0.38% to 16,832.58 while the S&P CNX Nifty was down 18.40 points or 0.36% to 5,102.15.
In the domestic currency futures market on the NSE, the front month '27 JUN 12' contract opened at 56.38 on Thursday, June 21, 2012, higher than the spot market rupee. The contract hit an intraday high at 56.54 and registered a low at around 56.32 so far during the day. At the time of writing, the NSE June 2012 USD/INR contract was trading at around 56.46, up by around 25 paise or 0.44% as compared to previous close at 56.21.
The US dollar continued to hold above a one-month low against a basket of major currencies on Thursday even after the Federal Reserve delivered another dash of monetary stimulus and said it was ready to do more if necessary. The Fed stopped short of launching a more aggressive programme of buying bonds outright, or QE3, that came below market expectations. The central bank expanded its "Operation Twist" by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of the year. The euro dipped to $1.2659, having risen to a high of $1.2742 the previous day, near a one-month peak of $1.2748 set on Monday. The pair was last seen quoting at 1.2677. Meanwhile, the dollar index stood at 81.588, staying above a one-month low of 81.186 hit earlier in the week.
Key benchmark indices extended initial losses to hit fresh intraday lows in morning trade. Weak Asian stocks hunt sentiment adversely. Most Asian stocks dropped as the latest data showed manufacturing activity cooling further in China and after investors hoping for major new Federal Reserve stimulus were disappointed. Foreign institutional investors (FIIs) bought Indian shares worth a net R 119.58 crore on Wednesday, 20 June 2012, as per provisional data from the stock exchanges. At the time of writing, the BSE Sensex was down 64.05 points or 0.38% to 16,832.58 while the S&P CNX Nifty was down 18.40 points or 0.36% to 5,102.15.
In the domestic currency futures market on the NSE, the front month '27 JUN 12' contract opened at 56.38 on Thursday, June 21, 2012, higher than the spot market rupee. The contract hit an intraday high at 56.54 and registered a low at around 56.32 so far during the day. At the time of writing, the NSE June 2012 USD/INR contract was trading at around 56.46, up by around 25 paise or 0.44% as compared to previous close at 56.21.
| RBI REF RATE | ||||
| Date | USD | GBP | EURO | YEN |
| 20-JUN-12 | 55.86 | 87.93 | 70.88 | 70.77 |
| % Change* | 0.28 | -0.09 | -0.48 | 0.21 |
| *As against previous working day | ||||
POWERED BY: COMMODITY INSIGHTS
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