India Forex - Forex Trading in India

India Monday 31 August 2009
* GDP data for June quarter due around 11 a.m. (0530 GMT)

* Shares fall more than 1 pct early (Updates to mid-morning)

MUMBAI, Aug 31 (Reuters) - The Indian rupee dropped on Monday in tandem with lower domestic stocks, with mixed Asian currencies providing little direction.

At 10:36 a.m. (0506 GMT), the partially convertible rupee INR=IN was at 48.83/84 per dollar, 0.4 percent weaker than its previous close of 48.65/66.

“The forex market has adjusted for the negative stocks. We are likely to trade in a 48.65-90 range today depending on how stocks perform from here on,” a senior dealer with a private bank said.

He said the market would also watch GDP data for cues, but unless it varies sharply from expectations it was not likely to have much of an impact.

The data, due at 11 a.m. (0530 GMT), is expected to show the economy grew 6 percent in the June quarter from a year earlier, faster than 5.8 percent in the March quarter. Shares .BSESN fell more than 1 percent early as investors took profits after the market’s 7.5 percent rally over the past 1-½ weeks, with weak Asian peers also weighing on sentiment. [.BO]

Foreign funds have invested a net $7.8 billion into local shares so far in 2009, after having sold more than a net $13 billion last year. The inflow has helped the rupee climb off a record low of 52.2 touched in early March.

Asian currencies were mixed against the dollar.
One-month offshore non-deliverable forward contracts PNDF were quoting at 48.91/49.01, weaker than the onshore spot rate.

India Monday 31 August 2009 : Rupee today resumed low by 19 paise at 48.84/85 against US Dollar from it previous close of 48.65 on sustained fresh buying of dollar by bankers and exporters, traders at the interbank foreign exchange (forex) said here.

The rupee fell this morning on expectations that Indian shares would open weak tracking lower Asian stocks, which could hurt foreign portfolio inflows.

Later, the partially convertible rupee fluctuated in a narrow range between 48.83 and 48.89 per dollar in intra day trade compared to the last close of 48.65/66. The local unit is currently trading low at 48.82/83, owing to bearish phase at the equity market.

India Monday 31 August 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 46.05 51.50 Sterling Pound 75.05 83.25 Euro 65.60 73.15 Australian Dollar 39.05 43.05 Bahrain Dinar 121.10 138.00 Canadian Dollar 41.45 46.65 Danish Kroner 08.60 10.00 Egyptian Pound 06.40 09.20 Hong Kong Dollar 05.75 06.85 Japanese Yen/100 49.35 54.95 Jordan Dinar 61.20 70.95 Kuwait Dinar 144.70 172.40 Malaysian Ringgit 12.45 15.10 New Zealand Dollar 30.70 35.45 Norwegian Kroner 07.40 08.60 Omani Rial 118.50 134.85 Qatar Rial 12.50 14.35 Saudi Rial 12.15 13.90 Singapore Dollar 31.05 36.35 South African Rand 05.50 06.60 Swedish Kroner 06.25 07.25 Swiss Francs 43.20 49.65 Syrian Pound 00.35 01.10 Thai Baht/100 132.10 155.70 UAE Dirham 12.45 14.10 Chinese Yuan 05.20 08.10.

India Saturday 29 August 2009
The Reserve Bank of India (RBI) stepped in this evening to soothe market sentiments after the government’s intention to borrow over Rs 4,00,000 crore during the current financial year pushed up bond yields.

RBI Deputy Governor Shyamala Gopinath told news agencies there was ample liquidity in the system and the central bank did not see any unusual movement in yields in the coming days. Ruling out private placement, the RBI deputy governor said the borrowing would be undertaken in a non-disruptive manner.

The finance ministry and the RBI would soon meet to finalise a new borrowing calendar to ensure adequate credit flow to productive sectors, Gopinath said.

In New Delhi, Finance Secretary Ashok Chawla said the government would meet at least half its gross borrowing requirements through open market operations

“It (higher borrowing) has to be supported by open market operations, at least by 50 per cent. It will be done in a manner in which it causes the least disruption,” Chawla said.

With fiscal deficit pegged at 6.8 per cent of the gross domestic product, as against 5.5 per cent of GDP in the Interim Budget, the yield on government paper shot up over 20 basis points across various maturities. Finance Minister Pranab Mukherjee’s borrowing programme for 2009-10 was higher than what the market was expecting.

The yield on the benchmark 10-year security —6.05 per cent paper maturing in 2019 — closed at 7.03 per cent compared with 6.83 per cent on Friday, according to data from the Negotiated Dealing Platform.

For the current financial year, the government has budgeted for borrowings of Rs 4,00,996 crore, 22.81 per cent higher than the revised estimate of Rs 3,26,515 crore in the last financial year and over three times the 2007-08 figure. Compared with the estimate of Rs 3,32,835 crore in the Interim Budget, presented in February, borrowings are expected to be 20.47 per cent higher.

Bloomberg adds, the rupee slid after the government forecast the widest Budget deficit in 16 years, increasing the risk of a cut in sovereign ratings.

The rupee weakened by 1.3 per cent, the most in almost six weeks, to 48.5375 against the dollar.

Dealers said the market would be flooded with government paper. The extent of borrowings is about Rs 40,000 crore than what the marker had estimated. This will push up yields in the near term.

The impact of higher borrowings would not be limited to government paper and companies would also have to access funds at a higher cost, said market players.

“If state governments are going to borrow at above 8 per cent, then companies will have to shell out more,” said S Srinivasaraghavan, head of treasury with IDBI Gilts said.

Meanwhile, the RBI announced auction of bonds worth Rs 15,000 crore, including fresh issue of 10-year paper worth Rs 6,000 crore. The auction is scheduled for Friday. It is expected to indicate emerging trends in the yield for the benchmark paper.

The currency might slide to 49 in the short term, Calyon’s Barbe said.

India Saturday 29 August 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 45.85 51.25 Sterling Pound 75.85 83.35 Euro 65.40 72.90 Australian Dollar 39.05 43.05 Bahrain Dinar 120.50 137.30 Canadian Dollar 41.40 46.60 Danish Kroner 08.55 09.95 Egyptian Pound 06.35 09.15 Hong Kong Dollar 05.75 06.80 Japanese Yen/100 48.55 54.05 Jordan Dinar 61.05 70.70 Kuwait Dinar 144.30 171.95 Malaysian Ringgit 12.40 15.05 New Zealand Dollar 30.65 35.40 Norwegian Kroner 07.40 08.55 Omani Rial 117.95 134.20 Qatar Rial 12.45 14.25 Saudi Rial 12.10 13.85 Singapore Dollar 30.90 36.20 South African Rand 05.50 06.65 Swedish Kroner 06.25 07.25 Swiss Francs 43.05 49.50 Syrian Pound 00.35 01.10 Thai Baht/100 131.25 154.70 UAE Dirham 12.40 14.05 Chinese Yuan 05.20 08.10.

India Friday 28 August 2009 - The Indian rupee rose on Friday, helped by the dollar’s weakness overseas, traders said, adding they expected refiners to buy dollars during the day.

* At 9:19 a.m., the partially convertible rupee INR=IN was at 48.86/87 per dollar, off an early high of 48.8225, and stronger than Thursday’s close of 48.91/92.

* The dollar was broadly weaker on Friday, after being aggressively sold-off in the previous session.

* Traders said local refiners would continue their dollar purchases to meet import commitments. Demand for dollars tends to be higher at month-end when importers make payments.

India Friday 28 August 2009
Mumbai, Aug 28 : Following were the indicative currency notes and traveller’s cheques buying and selling rates per unit as given by Thomas Cook India Forex here today.

(Figures in Rupees) ——————— Currencies Buy Sell US Dollar 46.00 51.04 Sterling Pound 75.01 83.35 Euro 65.85 73.45 Australian Dollar 39.05 43.05 Bahrain Dinar 120.95 137.08 Canadian Dollar 41.65 46.09 Danish Kroner 08.60 10.00 Egyptian Pound 06.40 09.20 Hong Kong Dollar 05.75 06.80 Japanese Yen/100 48.70 54.20 Jordan Dinar 61.25 70.95 Kuwait Dinar 144.50 172.20 Malaysian Ringgit 12.45 15.10 New Zealand Dollar 30.90 35.70 Norwegian Kroner 07.45 08.60 Omani Rial 118.40 134.75 Qatar Rial 12.50 14.35 Saudi Rial 12.15 13.90 Singapore Dollar 31.00 36.35 South African Rand 05.50 06.65 Swedish Kroner 06.25 07.25 Swiss Francs 43.25 49.70 Syrian Pound 00.35 01.10 Thai Baht/100 131.70 155.25 UAE Dirham 12.45 14.05 Chinese Yuan 05.20 08.10.

India Friday 28 August 2009: Rupee today rose by seven paise to open at 48.85 against USD on weaker dollar overseas, traders at interbank foreign exchange (forex) said here.

Later, rupee fluctuated in a narrow range between 48.87 and 48.82 a dollar in intra day trade. The local unit is still trading high at 48.83.

The partially convertible rupee was at 48.86/87 per dollar, off an early high of 48.8225, and stronger than yesterday’s close of 48.91/92.

The dollar was broadly weaker today, after being aggressively sold-off in the previous session, traders said, adding local refiners would continue their dollar purchases to meet import commitments.

Demand for dollar tends to be higher at month-end when importers make payments, traders said.

Forex Rate in India

India Thursday 27 August 2009.
The foreign exchange rates are updated daily from the data as published by Reserve Bank of India. It covers the currencies – US Dollars, GB Pounds, Euro & Yen.

Closing Forex Rate on Thursday 27 August 2009:

1 USD - 48.9800
1 EURO - 69.7700
1 GPB - 79.3941
100 YEN - 52.2500

India Thursday 27 August 2009: The Reserve Bank of India is set to buyback bonds upto Rs 12,000 cr from traders today. The market however does not seem too enthused by the move. The yield on the most-traded securities due 2019 rose 6 basis points to 7.19% at 12.30pm as traders await results of the buy back auction. Dealers attribute the rise in yields to some profit booking in bonds.

The central bank purchase will be the third this month. It has bought only Rs 40,000 cr of bonds since April 1, as against its target of Rs 80,000 cr for the first half of the fiscal. Today it will buy up to Rs 6,000 cr of notes maturing in 2019, 2023 and 2032.

“There was a dramatic fall in yields with traders building aggressive positions yesterday - and there was bound to be some profit booking,” said Ritesh Jain, head of fixed income at Morgan Stanley Investments. “Traders are counting on aggressive cut offs from the auction (RBI will buy at low yields), in absence of which there may be a sell-off,” he added.

When yields fall, prices rise.

Bonds rallied sharply on Wednesday - the most in six weeks - after RBI unexpectedly announced a Rs 6,000 cr buy-back of bonds on Thursday. This came as a surprise as this is the second successive week that RBI is conducting a buy-back — an exercise it conducts once a fortnight.

Traders are now wondering if this is just an one-off announcement or whether buy backs will be a weekly event. The government will also sell bonds worth Rs 12,000 cr this Friday.

The rupee is trading flat at 48.90 against the US dollar at 12.30pm despite month-end demand for the US currency and an upswing in the stock markets. It closed at 48.93 against the dollar yesterday. Forex dealers attributed the initial sharp fall in the rupee to choppiness in stocks and sustained month-end dollar demand from importers, mainly oil refiners, to meet their import requirement.

The dollar rose on Wednesday as reports that China would restrict investment renewed concerns about a global recovery despite data showing a jump in new US home sales.