India Forex - Forex Trading in India

India Wednesday 10 March 2010 - The rupee depreciated, after six days of gains, on speculation that importers will purchase dollars to pay for shipments, taking advantage of the local currency’s advance to a two-month high this week.

The rupee appreciated in each of the last four weeks and touched its strongest level since January 12 on Monday as the South Asian nation’s economic recovery spurred a stock rally and attracted foreign capital. Gains were also limited after the dollar index, used by the ICE to track the greenback against the currencies of six major US trading partners, climbed 3.7% this year.

“Greater demand for dollars is likely to emerge from importers following the rupee’s rally in recent weeks,” said RVS Sridhar, senior vice-president at Axis Bank in Mumbai. “From a technical perspective, the rupee may not have much room left to strengthen for now since the dollar has been rising against major currencies such as euro and the pound.”

The rupee weakened 0.2% to 45.6350 per dollar. The currency has gained 2% so far this year, the second-best performance among the 10 most-active Asian currencies outside of Japan.

Offshore contracts indicate bets the rupee will trade at 45.67 to the dollar in a month, compared with expectations of 45.56 on Monday. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency.

India Tuesday 9 March 2010 : Snapping the rally of last six sessions, the rupee today eased by two paise to 45.55 against the US Dollar in the early trade, on sustained buying of the greenback by bankers, traders at the Interbank Foreign Exchange (FOREX) said here.
It had ended up by eight paise to 45.53 per USD yesterday. It had shot up by 87 paise in the last six sessions.

The partially-convertible rupee weakened today on the back of weaker regional peers and taking cues from the domestic stock markets, they added.

The local unit was moving in a narrow range between 45.59 and 45.53 per USD in the intra day.

India Monday 8 March 2010 : Extending its rally for the sixth straight session today, the rupee shot up by 13 paise to 45.48 against the US Dollar, as against the previous close of 45.61, on sustained sell-off of the greenback by bankers, traders at the Interbank Foreign Exchange (FOREX) said here.

A week-long rally continued following capital inflows and the surge in equity markets. With the US currency getting weaker against other currencies, it also helped the rupee sentiment. The domestic currency has risen by 92 paise in the last six days, they added.

Later, the local unit was moving in a narrow range at 45.45 and 45.39 per USD in the intra day.

India Friday 5 March 2010 - The Rupee advanced to the strongest level in more than six weeks on optimism that the government will rein in its budget deficit in the next 12 months.

The currency appreciated for a fourth day after Finance Minister Pranab Mukherjee unveiled a budget proposal to help shrink the deficit to 5.5% of gross domestic product in the fiscal starting April 1 from a 16-year high of 6.9% in the current financial year. The government plans to improve its finances by raising more money from sales of state assets, according to Mr Mukherjee.

“The rupee has sustained a positive bias since the Budget unveiled plans to cut the fiscal deficit and boost revenues from privatisation,” said PV Rao, Mumbai-based head of foreign-exchange trading at IndusInd Bank.

The rupee strengthened 0.1% to 45.8175 per dollar. It touched 45.7588 earlier, the highest level since January 19. The currency appreciated 1.6% this year, the second-best performance among the 10 most-active Asian currencies outside of Japan.

Offshore contracts indicate bets the rupee will trade at 45.87 to the dollar in a month, compared with expectations of 45.88 on Wednesday. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency. India plans to raise as much as Rs 40,000 crore ($8.7 billion) from the sale of shares in state-owned companies in the next fiscal, from an estimated Rs 25,000 crore in the 12 months ending March 31, the FM has specified in his Budget speech.

“Economic fundamentals and market sentiment are currently in favour of the rupee,” Hemant Mishr, Mumbai-based head of global markets for South Asia at Standard Chartered, said in an interview on Wednesday. “The government is serious about reducing the fiscal deficit and global risk aversion is easing.”

The London-based bank is planning to expand its currency and debt team in India by 15% this year to take advantage of the growth in the South Asian nation’s economy and the financial market, Mishr said. Standard Chartered predicts the rupee will rise to 42 by the end of this year.

India Thursday 4 March 2010 : The Rupee today strengthened by six paise to 45.76 against US Dollar in the early trade, as compared to its previous close of , on sustained offloading of the greenback by bankers, traders at the Interbank Foreign Exchange (FOREX) said here.
The partially-convertible rupee firmed up because capital flows are improving, said a leading broker.

”Flows are expected to pick up significantly in the coming months due to the forthcoming share sales,” he added.

Later, it osciallated in a narrow range between 45.75 and 45.80 in intra-day trade. It is currently still stronger at 45.78 per USD.

India Wednesday 3 March 2010 : The rupee today appreciated by 15 paise to six-week high of 45.87 against the US Dollar in the early trade, as compared to its previous close of 46.02, on sustained offloading of the greenback by foreign banks and firm trend in domestic equity bourses, traders at the Interbank Foreign Exchange (FOREX) said here.
It had strengthened by six paise yesterday.
Later, it moved in a narrow range between 45.85 and 45.90 in intra-day trade. It is currently higher at 45.88 per dollar.

”The rupee, tracking the dollar’s fall, opened with a gap but has been more or less steady since then. Unless stocks breakout in a major way, it should hold in a 45.75-90 range during the day,” a dealer with a foreign bank said.

Support for the rupee is seen at 45.80, traders said.

The US currency fell to its lowest in more than two months against the Japanese yen today as investors dumped long positions against other currencies that had built up to levels not seen in more than a year.

The index of the dollar against six major currencies was down by 0.25 per cent. Most Asian units were also stronger compared to the dollar.

”The rupee is mainly tracking the local stock market today.

Asian currencies are also providing support,” said a senior trader at another foreign bank. Indian shares were trading up 0.8 per cent. One-month offshore non-deliverable forward contracts were quoted at 45.84/94.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange (NSE) and Multi-Commodity Exchange (MCX-SX) were both quoted at 45.9525 respectively, with the total traded volume on the two exchanges at about USD 555 million.

India Tuesday 2 March 2010 - The rupee appreciated by 10 paise to 46 a dollar in the early trade today in line with other Asian currencies and increased capital inflows by foreign funds into equities.

At the Interbank Foreign Exchange (Forex) market, the rupee appreciated by 10 paise to 46 a dollar. The domestic currency had closed 30 paise higher at 46.10/11 in the previous session on Friday. The markets were closed yesterday on account of ‘Holi’.

Forex dealers said rupee gained against the US currency in line with other Asian units and dollar selling by banks and exporters.

Besides, fresh capital inflows by foreign funds into equities also supported the Indian rupee, they added.

Meanwhile, the Bombay Stock Exchange benchmark Sensex rose by 243.55 points, or 1.47 per cent to 16,673.10, in the opening trade today.

India Friday 26 February 2010 : Snapping negative trend of last three days, the Rupee today recovered by ten paise to 46.30 against US Dollar in the opening trade, as against its previous close of 46.40 per USD, on heavy selling of the greenback by bankers, traders at Interbank Foreign Exchange (FOREX) said here.

A narrow osillation was seen in the local unit as it recorded the intra-day high and low at 46.32 and 46.28 per USD respectively.

Due to gain in eqity market, the Rupee improved, traders said.

The Rupee had slashed by 18 paise in the last three days.

Most Asian units were stronger compared to the dollar.

The dollar index against six majors was down 0.2 per cent.

Indian shares were trading up 0.19 per cent.

India Thursday 25 February 2010: The rupee depreciated by 4 paise against the dollar in early trade today following the US currency’s gains overseas.

At the Interbank Foreign Exchange (Forex) market, the rupee fell by 4 paise to 46.32 a dollar. The rupee had closed lower by 8 paise at 46.32/33 a dollar in the previous session.

Forex dealers said besides strong dollar overseas, month-end demand from importers for the US currency also weighed on the rupee sentiment.

Meanwhile, the Bombay Stock Exchange index Sensex rose by over 73 points, or 0.45 per cent at 16,329.33 points in the opening trade today.

India Wednesday 24 February 2010 : The rupee today eased by two paise to 46.25 against the US Dollar in the early trade, as compared to its previous close of 46.23, on good demand for the greenback from local importers, traders at Interbank Foreign Exchange (FOREX) said here.

It had weakened by five paise at 46.27 per USD yesterday.

Later, it was trading in a narrow range between 46.28 and 46.22 in intra day.

The partially convertible rupee fell due to demand for the US currency from importers ahead of the month-end, traders added.