Daily Forex Report - Research Via

MARKET HEADLINES

 Rupee trims initial gains vs dollar, still up by 2 paise

 

In line with equity market, the Indian rupee trimmed its initial gains against the American currency but was quoted still higher by two paise to 61.44 per dollar on mild selling of dollars by banks and exporters on the back of weakness of dollar overseas.

The rupee resumed higher at 61.35 per dollar as against the last weekend’s level of 61.46 per dollar at the Interbank Foreign Exchange ( Forex) Market and hovered in a range of 61.39 per dollar and 61.50 per dollar before quoting at 61.44 per dollar at 1045hrs.

In New York, the US dollar struggled for direction last Friday, attempting to rebound from a nearly two-year low versus the euro, as end-of-week position-squaring competed with lacklustre economic data, including a steeper-than- expected fall in consumer sentiment.

 Dollar near 2-year low against euro, shares cling to weekly gains

The dollar was slumped near a two-year low against the euro on Friday as clear expectations of continued US bond purchase left it facing its sixth weekly fall in seven and world shares close to five-year highs.

Soft US jobs data this week has bolstered the view that the Federal Reserve will not tamper with its huge bond-buying programme until well into next year, triggering a drop in the dollar and lifting both shares and bonds.

The broad weakness of the dollar remained the dominant theme for markets and a dip in Germany’s Ifo business index and euro zone lending data failed to dull the euro as it hovered at $1.3820 after hitting $1.3833 overnight.

The region’s broad FTSEurofirst 300 index was down 0.3 per cent by 0840 GMT. That left a third straight weekly rise in the balance, though shares remained near five-year highs.

Sterling has also enjoyed a strong run against the dollar in recent months and it edged up after the UK GDP reading with buyers encouraged by its economic recovery.

To Get Free Trial For Forex tips of two days visit our site http://www.researchvia.com/  or you can direct register to avail free trial by filling the form http://www.researchvia.com/free-trials/