MUMBAI, AUG 26 (TickerNews Service):
---------------------------------------------------------------------------
SPOT 1-YR FWD 1-YR FWD 1-MONTH FUTURES
PREMIUM ABSOLUTE
(Rs)
Last 66.3000-66.3100 ---------- --------- 66.3550-66.3575
Open 66.2200-66.2300 ---------- --------- 66.3000-66.3025
High 66.3600-66.3700 ---------- --------- 66.4250-66.4275
Low 66.1750-66.1850 ---------- --------- 66.2150-66.2175
(Rs)
Prev 66.6400-66.6500 6.73-6.78 4.15-4.17 66.0975-66.1000
----------------------------------------------------------------------------
9:15AM//USD/INR opens at Rs 66.22/$1 on FII outflows fear, weak Asian stocks
Dollar/rupee opens up Wednesday on fears of likely overseas outflows from the local shares tracking the weakness in Asian markets as investors doubt over efficacy of China rate cuts on its economy, dealers said.
"We can expect volatility as investors are stick in panic over China's immediate future," a dealer with a state-run bank said. "Dollar has recovered on safe-haven appeal on heightened uncertainty."
On Tuesday, China's central bank cut its key lending rate by 0.25 bps to 4.6% in an effort to calm stock markets after past days' turmoil. This is the fifth rate cut by PBoC; however investors remained sceptical about the move and awaits more robust reforms.
China's benchmark index, Shanghai Composite Index traded near 2% down in the morning Asian trades.
However the Shanghai and other avian markets were seen recovering pointing towards recovery in Indian markets later in the day.
Adding to this month-end dollar demand from oil importers too supported the rise in the currency pair.
Brent crude oil prices for September delivery traded at $44.43 a barrel as concern still persists about the possible recovery in the world's largest consumer of oils.
"Low oil price is prompting oil companies to shore up their reserves causing an increase in dollar demand," dealers added.
Dollar/rupee opened at Rs 66.22/$1 compared with previous close of Rs 66.10/$1.
------------------------------------------------------------------------------
8:55AM//USD/INR seen up as China rate cut seen not enough, weak Asian stocks
Dollar/rupee may open up Wednesday as investors fear that the rate cut in China is not enough to support the ailing Chinese economy amid sell-off in the Asian stock indices, dealers said.
"Rate cuts by China may not be enough to support the economy. Asian stocks are all down and this would mean Indian stock too may open down causing rupee to open weak today," a dealer with a state-run bank said.
On Tuesday, China's central bank cut its key lending rate by 0.25 bps to 4.6% in an effort to calm stock markets after past days' turmoil.
It is the fifth interest rate cut by the People's Bank of China since November last year.
However investors continue to remain sceptical about the recovery in Chinese economy causing China's benchmark index, Shanghai Composite Index to trade near 2% down in the morning Asian trades.
US stock futures were down 0.2% in Asian trade, suggesting further weakness on Wall Street on opening.
Japan's Nikkei lost 70 points to fall to 17,733.05
The Hang Seng, meanwhile, lost 0.6% or 128 points to fall to 21,276.81.
However another dealer with a private sector said, "This weakness could be temporary and the sentiments would ease as investors take a hold of China's policies."
------------------------------------------------------------------------------
8:45AM//USD/INR NDF down; Dollar index up as China rate cut not seen enough
Dollar/rupee in the inter-bank offshore market traded slightly down, while dollar index rose on fear that the rate cut in China may not be enough to stabilise the Chinese economy, dealers said.
The dollar index, which tracks the strength of the greenback against six major currencies, traded at 93.98 Wednesday during early Asian trades compared with 93.49 at close in New York time.
Dollar/rupee in the non-deliverable forwards market maturing in one month, traded at Rs 66.71/$1 compared to previous close of Rs 67.51/$1 and onshore spot previous close of Rs 66.10/$1.
The People's Bank of China Tuesday cut interest rates and bank reserve requirement ratio in a move to boost investor confidence amid daily slump in the Chinese stock market.
The one year lending rate was cut by 25 basis points to 4.6% effective Wednesday, while the one year deposit rate was cut by another 25 basis points to 1.75%.
The PBOC also lowered the reserve requirement for rural banks, which governs how much banks can lend to the economy, by 50 bps effective from Sep 6.
The rate cut is the fifth by the Chinese central bank since November 2014, while the reserve-requirement cut for all banks is the third this year.
Asian markets once again opened down on an apparent lack of faith in Chinese measures to curb market volatility after the Yuan devaluation.
The Shanghai Composite Index sank 3.8% to 2,852.21 in early trades.
Japan's Nikkei lost 70 points to fall to 17,733.05
The Hang Seng, meanwhile, lost 0.6% or 128 points to fall to 21,276.81.
No comments:
Post a Comment