India Forex - Forex Trading in India

Forex Rates in India: Rupee-Dollar pairing remains clueless in July 2009
India, Friday 31 July 2009
Rupee-dollar pairing remained clueless in the month of July. It took support from the levels of 47.80 and recovered by almost 3.5% touching its 2 month high of 49.48.

This move was seen after the results of Union budget were announced. The Budget has resulted in sharp depreciation in the domestic currency (INR) against greenback due to outflow of funds as the various measures taken will lead to a lot of spending thus leading to an increase in fiscal deficit.
Due to this widening of gap the government may not consider further lowering the interest rates for sometime in near future.

The fiscal deficit is projected to be at 6.8% by March 2010. This was the scenario in the first half of the month but as the Indian equity markets started to recover, this led to appreciation of the rupee against the dollar.

Overall, July was a month of lackluster trading in rupee.. The domestic currency gradually strengthened as the equities remained firm.

However market failed to display the exuberance as seen in equities. Technically this still appears to be a pullback rally with the broader trend favoring the dollar bulls.

Logic here is simple that market always moves faster in the direction of the main trend. From March-May dollar strengthened quite dramatically and subsequently the recovery seen in the rupee from June onwards has been slow and boring.

Typically corrective rallies are difficult to trade. Hence one needs to remain patient in this market before a major trend resumes.

Forex Trading In India-Indian Rupee remains higher in noon trade on 31 July 2009
India, Friday 31 July 2009
After opening at 48.23, tracking the strength in the Indian equity markets, the Rupee further strengthened to a intraday high of 48.12 against the Dollar.

It has given up some of the gains and is trading at 48.19, up 17 paise from previous day’s close. The Nifty has been trading with steady gains throughout the day and at the moment is up 1.80%, at 4653.
The European markets have opened flat, which could cause a correction in the Indian equity market thereby affecting the USD/INR pair. The FTSE is down 0.02%, the CAC is up 0.19% and the DAX is up 0.12%.

The Dollar is trading weak against the Euro for a second consecutive day as funds are moving towards higher yielding currencies ahead of the U.S. government report in the evening that is expected show that the contraction in the world’s largest economy has slowed.

The Euro is up 50 pips, against the dollar. The US GDP data for 2nd quarter will be released in the evening at 6.00 PM IST.

Indian Forex Market : Rupee opens up by 11 paise at 48.25/26 against US Dollar on Friday 31 July 2009
Mumbai, Friday 31 July 2009 : The Rupee furthered its previous gains by 11 paise at 48.25/26 against per US dollar in the opening session today on expectations of fund inflow and weak US currency against other Asian currencies, traders at the interbank foreign exchange (forex) said.
The local unit oscillated in a wide range as it registered high and low at 48.50 and 48.25 per USD respectively.

Presently, it was moving up by 21 paise at 48.15 per USD compared to its last close of 48.36.

Expecting increased foreign capital inflows in line with better trends in the other Asian equity markets, Rupee hiked today.

Similarly Dollar’s weakness against other currencies too supported the Indian rupee, traders said.

However, sustained dollar demand from oil refiners for month-end requirements capped rupee’s gains, dealer added.

Thomas Cook India Forex:Pound up; US Dollar, Euro, Yen down on Friday 31 July 2009
India, Friday 31 July 2009 : Following were the indicative currency notes and traveller’s cheques buying and selling rates per unit as given by Thomas Cook India here today.

(Figures in Rupees) Currencies Buy Sell US Dollar 45.45 50.80 Sterling Pound 75.40 83.65 Euro 64.05 71.45 Australian Dollar 38.10 42.00 Bahrain Dinar 119.55 136.20 Canadian Dollar 41.50 46.70 Danish Kroner 8.35 9.75 Egyptian Pound 6.30 9.05 Hong Kong Dollar 5.70 6.75 Japanese Yen/100 47.30 52.70 Jordan Dinar 60.50 70.05 Kuwait Dinar 142.50 169.80 Malaysian Ringgit 12.30 14.95 New Zealand Dollar 29.15 33.65 Norwegian Kroner 7.15 8.30 Omani Rial 117.10 133.30 Qatar Rial 12.35 14.15 Saudi Rial 12.00 13.75 Singapore Dollar 30.65 35.95 South African Rand 5.40 6.55 Swedish Kroner 5.95 6.90 Swiss Francs 41.65 47.90 Syrian Pound 0.35 01.10 Thai Baht/100 130.35 153.65 UAE Dirham 12.30 13.90 Chinese Yuan 5.15 8.00.

India Forex Exchange -RBI fixes reference rate at Rupees 48.16 per US dollar
India, Friday 31 July 2009 : The Reserve Bank of India (RBI) today fixed the reference rate at Rupees 48.16 per US dollar, down by 33 paise from its previous rate of Rupees 48.49 per unit.
The Euro has also declined by 12 paise at Rs 68.08 per unit against the last close of Rs 68.20 per unit, an RBI statement said.

The exchange rates for Pound and Japanese Yen were quoted at Rs 79.7506 (Rs 79.6885) per Pound and Rs 50.57 (Rs 51.00) per 100 units of Yen, the statement added.

India, Friday 31 July 2009
Indian rupee opened in green Friday mainly on positive regional stocks that raised hopes for local stocks to attract more capital inflows.

The partially convertible rupee was seen trading at 48.24 per dollar at 9.30 a.m, 11 paise stronger than Thursday’s close of 48.35 per dollar.
Dealers said they would watch out for dollar demand from oil refiners on the last day of the month, when demand tends to peak as importers need to make payments.

Forex Analysis:Indian Rupee review and outlook for Friday 31 July 2009
India, Friday 31 July 2009
Indian Rupee bounced back from its, early, steep fall and ended higher by about seven paise against the US Dollar Thursday in sync with the recovery in Indian equity markets.

Finally, the USD/INR closed Thursday at 48.36, down 7 paise from the previous day’s close.

In early morning trading, tracking gains in the Asian equity market and a 60 points gain in the Singapore Nifty contract, the USD/INR has opened at 48.23, down 13 paise from previous day’s close.

In news that will lead to reduction in the demand of the US Dollar against the Indian Rupee in the long run, Cairn India limited is set to pump Crude from its oil fields in Mangla, Rajasthan.

Cairn has indicated that production will quickly touch 30,000 bpd (barrels per day) by the end of third quarter this year and reach a plateau of 175,000 bpd (8.75 million tonnes a year) in 2011.

In dues course of time when this oil field will start producing at optimum level, it is expected to reduce India’s oil import bill by $6.8 billion, or 7%.

Indian Forex- Indian rupee largely steady in line with Local Stocks
India, Friday 31 July 2009 - The Indian rupee was largely steady in afternoon trade on Friday in tandem with local stocks while losses in the dollar versus majors overseas continued to underpin sentiment.

* At 2:50 p.m., the partially convertible rupee INR=IN was at 48.23/24 per dollar, stronger than its close of 48.35/36 on Thursday, when the unit dropped as low as 48.58, its weakest since July 22.

* Indian shares .BSESN were trading 1.2 percent higher as hopes for a global economic recovery were revived by a set of solid corporate results overseas that boosted markets across Asia following a Wall Street rally overnight. [.BO]

* Dealers said sharper gains were prevented due to some dollar demand from oil refiners to settle month-end bills. Refiners are the largest buyers of dollars in the domestic currency market.

* The dollar slipped on Friday as an ongoing rise in global stock markets helped to spur demand for currencies considered to be higher-risk, while investors awaited a reading of U.S. economic growth later in the day. [USD/]

* In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at 48.3350 and 48.3375 respectively, with the total traded volume on the two exchanges at about $673 million.

Forex Market India - Indian rupee gains on inflow hopes as shares rise
India, Friday 31 July 2009
* Strong gains in shares boost hopes for capital inflows

* Dlr’s losses versus majors also boosts rupee

* Adani IPO-related inflows; oil related dlr demand eyed (Updates to mid-morning)

MUMBAI, July 31 (Reuters) - The Indian rupee strengthened on Friday as a firm start in the sharemarket raised expectations for more capital inflows, and weakness in the dollar versus majors overseas also underpinned sentiment.

At 10:10 a.m. (0440 GMT), the partially convertible rupee INR=IN was at 48.17/18 per dollar, 0.4 percent above its close of 48.35/36 on Thursday, when the unit dropped as low as 48.58, its weakest since July 22.

“There are inflows today, all major custodian banks are selling dollars, but the rupee is unlikely to move up very fast as state-run banks are buying, probably for oil companies,” a senior dealer with a foreign bank said.

“It’s likely to trade in a 48.10-48.30 range today, unless there are very significant inflows,” he added.

Oil CLc1 is India’s biggest import and refiners are the largest buyers of dollars in the local currency market. Demand for dollars tends to peak at month-end when payments for imports are generally made.

Shares .BSESN rose 2 percent in early trade, tracking stronger Asian peers and a Wall Street rally after a set of solid corporate results overseas revived hopes for a global economic recovery.
Foreign funds have bought a net $7.1 billion worth of shares this year, following net sales of more than $13 billion in 2008.

Dealers suspected inflows from the Adani Power initial public offer (IPO), which were seen on Thursday, would likely continue on the last day of the offer. The IPO opened on July 28.

One-month offshore non-deliverable forward contracts PNDF were quoting at 48.19/29, steady with the onshore spot rate.

The dollar slipped on Friday as growing hopes for a global recovery prompted investors to pick up riskier assets such as stocks, pushing up higher-yielding currencies.

India Forex Exchange:Indian rupee seen rising on gains in global stocks
India, Friday 31 July 2009 - The Indian rupee INR=IN is expected to pull further away from one-week lows touched in the previous session in the wake of gains in most global and Asian stock markets, which could bring in more foreign funds.

* The partially convertible rupee INR=IN closed at 48.35/36 per dollar on Thursday, 0.1 percent stronger than its previous close of 48.42/43. The rupee fell to as much as 48.58 on Thursday, its weakest since July 22.

* Global stocks rallied and oil surged more than 5 percent on Thursday as solid corporate results worldwide and encouraging economic data boosted sentiment that had turned skittish earlier in the week. [ID:nN3067300]

* Nifty stock futures SINc1 in Singapore were up 1.3 percent at 0250 GMT, pointing to a firm start in the local market. The Morgan Stanley index of Asian stocks outside Japan .MIAPJ0000PUS were up 1.5 percent.

* Dealers said they would watch out for dollar demand from oil refiners on the last day of the month, when demand tends to peak as importers need to make payments.

* Inflows related to the Adani Power initial share offering which were seen in the previous session were also likely to continue on the last day of the offer, dealers said, predicting a range of 48.10-48.40 for the day.