Rupee at 50

 Rupee at 50 

Rupee hits new record low...Recovers on RBI intervention

The Indian rupee recovered from session lows to end slightly higher against the US dollar as the Reserve Bank of India (RBI) intervened to defend the beleaguered domestic currency and exporters sold the greenback. The euro inched up from two-year lows against the dollar on Friday, partly helping the rupee recover. The rupee still closed down for an eight successive week, having hit seven straight record lows since May 16. Its latest was on Thursday when it fell as low as 56.39. This is the rupee's longest losing streak since the 11-week fall that culminated in October 2008. The rupee ended the day at 55.3750 per dollar after being as high as 55.2350 and as low as 56.0850. It opened at 56.00 as against the previous close of 55.6550. Its weekly low was 56.39 while its weekly high was 54.4350. It had closed at 54.39 last Friday. The RBI is likely to have sold dollars in spot markets via public sector banks to prevent the rupee from falling beyond the psychologically key level of 56 per dollar, according to reports. The RBI is also said to have intervened in the forward markets. Some banks were seen selling off their long dollar positions ahead of the weekend. Some selling from exporters who had missed Thursday's deadline to convert half of their foreign currency holdings into rupees was also cited by traders, according to reports. Besides selling of dollars by some public sector banks and exporters, a rebound in the local stocks and steps taken by the RBI helped the rupee recover from an all-time low on Thursday. The RBI will take the required steps, consistent with its policy, to curb swings in the rupee, RBI Governor D. Subbarao said yesterday. "We have taken action to improve the current flows, encourage inflows and also to curb speculation," Subbarao told reporters in Mussoorie. "We will do whatever is necessary, consistent with our policy."

Rupee Woes

 Rupee Woes

Rupee at 3-month high...Up for 5th week in a row

The rupee touched a three-month high versus the US dollar, with the sentiment getting a boost from robust FII inflows and continued rally in domestic stocks. A series of positive economic data in recent times have brought global investors back into riskier assets like emerging market equities and currencies. The rupee closed at 48.6950 to the dollar after being as high as 48.67 and as low as 49.1950. It opened at 49.1250 versus the previous close of 49.16. It has gained more than 8% in 2012. On a weekly basis, the rupee hit a high of 48.67 and a low of 49.81. It had closed at 49.31 on January 27. The Indian currency gained for a fifth consecutive week, the longest winning streak since Oct. 2010 on the back of strong FII inflows and better-than-expected manufacturing PMI data for January. The rupee advanced past 49 per dollar yesterday for the first time since November, as exchange data showed that FIIs poured in US$536mn into Indian shares in the first three days of this week. On Feb. 1, HSBC Holdings Plc and Markit Economics reported that India’s Purchasing Managers’ Index (PMI) rose to 57.5 in January from 54.2 in December. The HSBC Business Activity Index for the service sector, compiled by Markit, rose to 58.0 in January from 54.2 in December. January was the third month the services index has been above the 50-mark that separates growth from contraction. The euro headed for a weekly decline as Greece and its creditors struggle to reach an agreement on a debt swap. The yen traded near a postwar high versus the dollar, raising speculation that the country will intervene to weaken the Japanese currency. The euro slid against the yen. New Zealand’s dollar fell from a five-month high. Asian currencies were headed for a fifth weekly advance, led by Taiwan’s dollar, as foreign investors pumped fresh money into the region amid optimism that the global economy is holding up well. The Bloomberg-JPMorgan Asia Dollar Index was set for its longest weekly gains since Oct. 2010 after reports showed manufacturing in the US, China and Germany picked up in January. Most Asian currencies fell today as regional stocks snapped a three-day advance.

HedFX and Rupee Trends - Dec 12 2011

HedFX and Rupee Trends - Dec 12 2011

USD-INR, IT Sector, Metal Sector, HDIL

USD-INR, IT Sector, Metal Sector, HDIL

Rupee Implications

Rupee Implications

Rupee Risks

Rupee Risks

Rupee slumps to 28-month low...Stocks plunge, Dollar jumps

The rupee plummeted to a new two-year low against the US dollar on Thursday on the back of relentless selloff in global equities and Asian currencies.


Also, the dollar climbed to a seven-month highs against major currencies after the Federal Reserve said that there were significant downside risks to the economy.

Rupee weakens from two-year peak

The rupee slipped from its highest level in more than two years against the dollar, as local stocks fell and the US currency recovered some of the lost ground against major international rivals. The rupee also fell as domestic oil refiners bought dollars to buy crude oil, and other Asian currencies declined. Traders and dealers are also closely watching the Reserve Bank of India (RBI), which had bought dollars to stem the rupee's strength on Oct 14. The partially convertible Indian currency ended at 44.59 per dollar on Friday, after touching a week's low of 44.60 and week's high of 44.1275. It had closed at 44.1050 on Oct. 15. The rupee fell 1% this week. Last Friday it had risen to 43.96, its highest since August 2008.

Rupee soars past 44 on heavy FII inflows

The rupee surged to its highest level in more than two years against the dollar, notwithstanding a weak stock market and suspected RBI intervention, as foreign inflows are expected to shoot up in light of the Coal India IPO. The partially convertible Indian currency closed at 44.1050 per dollar, after touching a day's high of 43.9750, its highest since September 2008. It opened at 44.2550 and touched a day's low of 44.2675. It had closed at 44.12 on Thursday. It had closed at 44.4350 on October 8. Demand by local oil companies limited the gains in the rupee, according to reports. Traders and dealers are also closely watching the Reserve Bank of India (RBI), which had bought dollars to stem the rupee's strength on Thursday.

Rupee at 25 month high

The rupee surged to its highest level in more than two years against the dollar on Oct. 7, as the US currency weakened in the overseas markets amid growing talk of fresh Quantitative Easing by the Federal Reserve to revive economic growth. But a drop in local stocks and concern that the RBI may intervene in the market curtailed the weekly gains in the partially-convertible Indian currency, which fell the most in a month on Friday. The rupee ended on Friday at 44.4350 against the dollar after touching 44.1150 in the previous session, its strongest level since Sept. 1, 2008. The rupee has gained 5% in the past month, the best-performance among the 10-most traded Asian currencies. It had closed at 44.1950 on Thursday.

Rupee and bonds gain as Govt hikes FII cap in debt

The Indian rupee rose to its highest level in more than four months against the US dollar on Friday and benchmark bond prices gained after the foreign investment ceiling in government and corporate bonds was increased by US$5bn each. The local currency also got support from another strong day for the local stock market and registered its fourth straight weekly gain.

Rupee hits new three-month high on stock rally

The Indian rupee extended gains against the US dollar to touch a new three-month high, buoyed by strong gains in the local stocks and a weak dollar in the overseas markets. The partially convertible Indian currency was last seen trading at 45.8450 per dollar, stronger than 46.14/15 at close on Thursday. It earlier touched 45.8250, its highest level since June 21. The rupee, which was headed for its biggest weekly advance since July, climbed to a three-month high after the RBI yesterday raised its benchmark interest rates for the fifth time this year.

Rupee pulls off a hat-trick as stocks gain

Indian rupee rose for a third consecutive session on Friday amid optimism that strong economic growth and a rising local stock market will continue to attract overseas capital inflows. Other Asian currencies, barring the yen, gained against the dollar amid growing risk tolerance. But, the euro edged slightly lower against the dollar ahead of the announcement of the stress test results for 90-odd European banks. The partially convertible rupee ended at Rs46.9450 per dollar, after touching an intraday high of Rs46.8950. It had closed at Rs47.1250/1350 on Thursday. It touched Rs47.3850 on July 20, the weakest level since June 7.

Rupee joins elite club...gets its own symbol

The Union Cabinet approved the final design for the unique symbol of the Indian rupee. It has given its approval to the numerical representation for the Indian rupee, which is a mix of the Devanagri 'Ra' and Roman 'R'. This symbol will be used by all individuals/entities within and outside India after its incorporation in `Unicode Standard’, ‘ISO/IEC 10646’ and ‘IS 13194’. The symbol will standardize the expression for Indian Rupee in different languages, both within and outside the country. It would better distinguish the Indian currency from those countries whose currencies are also designated as Rupee or Rupiah, such as Pakistan, Nepal, Sri Lanka and Indonesia.

Rupee gains for second straight day

The Rupee extended its gains on Friday, as stocks continued to rally amid a global rebound in risky assets. The Indian currency also received a boost from strong economic prospects and rising interest rates, raising expectations of more capital inflows from foreign investors. Some dollar demand from the Haj pilgrimage committee for the annual religious pilgrimage prevented a sharp rise in the Rupee against the dollar, according to reports.

Rupee hits 6-week low as dollar climbs

The rupee touched a six-week low of 45.46 but recovered some of the lost ground amid suspected intervention by the RBI. The partially convertible Indian currency closed at 45.30, after hitting its lowest since March 26, but was well below last Friday's close of 44.37. At Thursday's low, the rupee was down 1.2% on the day. Some dealers also that said exporters may have sold dollars taking advantage of the sudden fall. The rupee was also weighed down by persistent selling in Indian stocks and the dollar's gains overseas amid simmering eurozone debt worries.

The rupee fell this week on speculation that importers will step up purchases of the US currency to pay for shipments after an index that tracks the greenback's strength touched a one-year high. The rupee weakened as India’s benchmark stock index headed for the worst week in more than three months, spurring concern that global investors are exiting emerging-market assets in favor of the US currency. The Dollar Index, which tracks the greenback against the currencies of six major American trading partners, rose as high as 84.307, the highest level since May 2009.

The euro extended its losses against the dollar and yen, dropping to a fresh 14-month low below US$1.2770 and hitting a two-month low against the Japanese currency as concerns about debt problems in the euro zone mounted.

Rupee declines again

Ends at 46.15/16 per dollar

Rupee fell for a fourth day on Friday (22 January 2010), but pulled back from a two-week low struck early as exporters cashed in their dollars in the belief the drop was overdone.

Rupee ended 0.2% weaker at 46.15/16 per dollar from previous day's 46.04/05. The unit fell as low as 46.2750 in early deals, its lowest since 5 January 2010.

Rupee at 2-week low

Ends at 46.04/05 per dollar

Rupee extended losses for a third day on Thursday and slipped to its lowest close in over two weeks as a stock market slide added to concerns about a strengthening dollar.

Rupee ended down 0.2 percent at 46.04/05 per dollar, its weakest close since Jan. 6 and below the previous day's 45.93/94. It fell to as low as 46.10 during trade.