NRI Newsletter - Market News

NRI Newsletter - Market News

MARKET RATES & NEWS - Updated as on 17th April 2014

USD/INR: as on  16th April, 2014
USD/INR as on  16th April,  2014 
Indian rupee dropped for a third straight session on Wednesday, its worst falling streak since late-January, as profit-taking in the domestic share market by offshore investors hurt the local unit. Indian shares fell to their lowest close in 2-1/2 weeks as software stocks slumped on caution ahead of India's top IT services provider Tata Consultancy Services' earnings report later in the day. Rupee closed at 60.37/38 per dollar compared with 60.23/24 on Tuesday. The unit moved in a range of 60.20 to 60.43 during the session. Gains in other Asian currencies after strong China growth numbers, however, limited the fall in the rupee.
Mumbai Forex markets would be closed on Friday 18th April, 2014 on account of Good Friday Holiday.
Open : 60.30  Low : 60.1950
High   : 60.42  Close: 60.3750
Highest : 68.85 on  28th August, 2013
Cash/Tom: 5.00/5.50    Cash/Spot: 6.00/7.00
Tom/Spot:1.00/1.50 Spot/Next:1.10/1.60

Forward premium (in %  16th April,  2014)

1 Month: 8.41/8.68
3 Months: 8.46/8.59
6 Month: 8.36/8.42
12 Months: 8.23/8.26
FORWARDS:  as on 16th April,  2014

Forward premiums higher for the first time in the last six trading sessions on Wednesday. One year benchmark premium closed at 8.26% against its previous close of 8.20% on Tuesday.

LIBOR (Updated as on  02nd April,  2014)

Tenor USD EURO GBP JPY
1Month    0.15200 0.22071 0.48531 0.10143
3 Months 0.22785 0.29143 0.52531 0.13500
6 Months 0.32090 0.38771 0.62381 0.19107
1 Year
0.54650
0.55029
0.91063 0.34500
MAJOR CURRENCIES: as on   16th April,  2014

USD:      The dollar traded largely higher against most major currencies on Wednesday, looking past dovish comments from Federal Reserve Chair Janet Yellen and rising on demand from investors ditching the yen due to strong Chinese data. The Federal Reserve will keep benchmark interest rates low even as the economy improves to ensure sustained recovery, Yellen said earlier. Elsewhere, U.S. industrial production rose 0.7% in March from February, beating expectations for a 0.5% reading, which supported the dollar despite soft housing data. The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 79.90. On Thursday, the U.S. is to publish data on initial jobless claims and a report on manufacturing activity in the Philadelphia region.
 
EUR:       In the euro zone, data revealed that the annual inflation rate slowed to 0.5% in March from 0.7% the previous month, but in line with expectations. Euro zone inflation has now been in the European Central Bank's danger zone of below 1% for six straight months, fuelling speculation that policymakers will need to implement fresh stimulus measures to shore up the fragile recovery in the euro area. In U.S. trading on Wednesday, EUR/USD was up 0.03% at 1.3814.
 

GBP:   - Sterling strengthened broadly, with GBP/USD up 0.40% to 1.6814, not far from the four year peaks of 1.6821 struck on February 17. The pound’s gains came after data showed that the U.K. unemployment rate fell to a five year low of 6.9% in the three months to February, bolstering the outlook for the wider economic recovery.
 
JPY:       The US Dollar was up against the Japanese Yen on Wednesday, with USD/JPY up 0.34% at 102.26. Data released earlier revealed that China’s gross domestic product expanded at an annual rate of 7.4% in the first three months of 2014, slowing from 7.7% in the fourth quarter, but beating expectations for a 7.3% reading, which softened the yen as investors ditched the safe-harbor currency to take on risk. Also softening the yen, Japanese Central Bank Governor Haruhiko Kuroda told parliament now is not an appropriate time to discuss exiting stimulus policies.
 
GOLD:    Gold prices ended the U.S. day session steady to slightly higher on Wednesday, on some mild short covering and bargain hunting.  Spot gold was last quoted down $0.80 at $1,302.00.


Foreign Currencies (Updated:17:30 hrs as on  02nd April,  2014)

USD/INR : 60.3750

Against

USD

INR

   EUR

   1.3840

83.56

  GBP

1.6790

 101.37

  JPY

     102.28

 59.03

  AUD

0.9362

       56.52

 


Stock Index
(Updated: as on  
 16th April,  2014)
Index 15th April    16th April
BSE sensex 22484.93 22277.33
NSE Nifty 6733.90 6675.30
DOW Jones 16262.56 16424.85
NASDAQ  4034.16 4086.23



Outlook for the day - 17TH APRIL,  2014
USD / INR is expected to trade in a range between 60.20 and 60.45 with higher bias. US Dollar may strengthen against the majors.               
 
Major Economic Data Releases for the Day
 

Date

Time IST

Region

 Description

17.04.2014 11.30 EUR German Producer Price Index m/m
17.04.2014 18.00 USD Jobless Claims. 
Interest rate on NRE accounts has been left to the choice of the banks.
IOB offers 9.00% for NRE deposits

 Interest rate on FCNR accounts has been increased steeply up to 3%.

RBI has permitted transfer of funds from NRO account to NRE account up to the permitted remittance
of USD 1 million
NRIs can add their close relatives in India in their NRE / FCNR account and operate the account on a 'former or survivor' basis.
The views contained herein are those of individuals and not necessarily those of the Bank.  This is for information purpose only and no recommendations are intended.  While due care has been taken in preparation of this communication, IOB cannot be held   responsible for any consequences of any decisions based on this information. Comments may be emailed to feddeal@iobnet.co.in
 
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