NRI Newsletter - Market News

NRI Newsletter - Market News

MARKET RATES & NEWS - Updated as on 03rd April 2014

USD/INR: as on  02nd April, 2014
USD/INR as on  02nd April,  2014 
India’s Rupee retreated after earlier hitting its highest level in eight months on Wednesday as importers rushed in to buy dollars.  The central bank is also suspected to have been buying dollars in recent sessions to shore up its foreign exchange reserves, which now stand at $298.64 billion, their highest since December 2011. The rupee has remained supported by a powerful rally in Indian shares, which touched a record high for an eight consecutive session on Wednesday, on the back of strong foreign inflows. Sentiment was also supported after the Reserve Bank of India kept interest rates on Tuesday as widely expected as it shifts to boost growth than tame inflation. Rupee closed at 59.9050 per dollar little changed compared to its Friday's close of 59.9150. The rupee hit 59.5950 to the dollar in intraday trade, its strongest level since July 30.  Mumbai Forex markets were closed on 31st March and on 01st April on account of Gudi Padwa – Maharashtrian New Year and Bank Annual Closure of Financial accounts respectively.
Open : 59.81  Low : 59.5950
High   : 59.91  Close: 59.9050
Highest : 68.85 on  28th August, 2013
Cash/Tom: 1.20/1.60 Cash/Spot:5.30/7.30
Tom/Spot:4.00/5.50 Spot/Next:1.30/1.60

Forward premium (in %  02nd April,  2014)

1 Month: 9.21/9.43
3 Months: 8.82/8.95
6 Month: 8.80/8.87
12 Months: 8.61/8.64
FORWARDS:  as on 02nd April,  2014

Forward premiums ended higher for the fourth consecutive day on Wednesday. One year benchmark premium closed at 8.64% against its previous close of 8.58% on Friday. 

LIBOR (Updated as on  02nd April,  2014)

Tenor USD EURO GBP JPY
1Month    0.15200 0.21429 0.48563 0.10143
3 Months 0.23010 0.28571 0.52719 0.13643
6 Months 0.32800 0.38414 0.62219 0.19214
1 Year
0.55510
0.55100
0.90750 0.34571
MAJOR CURRENCIES: as on   02nd April,  2014

USD:  The U.S. dollar index, which had been off for the day before publication of the ADP National Employment Report of private-sector payrolls for March, rose 0.18 percent to 80.236 on Wednesday.  The ADP report showing 191,000 private-sector jobs added last month was slightly under forecast but also included an increase in job growth during February.  Other data encouraging optimism about America's economy showed new orders for U.S. factory goods had rebounded more than expected in February. Some shipments posted their biggest gain in seven months.  March U.S. nonfarm payrolls are scheduled for release by the federal government on Friday. Nonfarm payrolls are expected to have increased by 200,000 in March, the largest gain in four months, according to a Reuters poll of economists.  A strong showing in Friday's payrolls reports will fuel a rally in the greenback.
 
Euro: Investors remained cautious about the euro, as euro zone policymakers are trying to tame the euro's recent strength. Inflation in the euro zone also fell to its lowest level since November 2009 in March. ECB policymakers meet this Thursday, facing the dilemma of whether to take more action to spur growth and weaken the currency, which is near 2-1/2-year highs on a trade-weighted basis. Against the dollar, EURO was down 0.12 percent at $1.3766 on Wednesday.
 
GBP:  Sterling rose against the dollar and the euro on Wednesday, helped by solid construction data for March, a sign of robust economic growth in the first quarter. The improved outlook kept alive the chances that the Bank of England may have to tighten monetary policy in the next 12 months. Although not quite as high as the 63 reading the markets were expecting, (the UK construction PMI) still points to a very solid first-quarter GDP figure with a preliminary reading of at least 0.7 percent expected.  Against the dollar, sterling was up 0.3 percent at $1.6625 on Wednesday, with the dollar failing to get much traction from a private sector survey of the U.S. jobs market.
 
JPYThe dollar touched a 10-week high against the Japanese yen on Wednesday as the greenback rallied on reports signaling U.S. businesses are shaking off a chill on hiring and factory orders from harsh winter weather. For the day on Wednesday USD/JPY closed at 103.85.
 
 
GOLD: Gold prices ended the U.S. day session moderately higher on Wednesday, on a short-covering and bargain-hunting; following recent strong selling pressure that saw prices hit a seven-week low on Tuesday. Spot gold was last quoted up $11.20 at $1,291.50.


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

USD/INR : 59.9050

Against

USD

INR

   EUR

   1.3795
82.64

  GBP

1.6655

 99.77

  JPY

     103.69

 57.77

  AUD

0.9257

       55.45

 


Stock Index
(Updated: as on  
 02nd April,  2014)
Index Previous Close   Close
BSE sensex 22295.65 22534.22
NSE Nifty 6721.05 6752.55
DOW Jones 16532.61 16573.00
NASDAQ  4268.04 4276.46



Outlook for the day - 03rd March,  2014
USD / INR is expected to trade in a range between 59.80 and 60.10 with lower bias. US Dollar may strengthen against the majors.           
 
Major Economic Data Releases for the Day
 

Date

Time IST

Region

 Description

03.04.2014 14.00 GBP PMI Services. 
03.04.2014 17.15 EUR Rate Decision. 
03.04.2014 18.00 USD Jobless Claims and Trade balance. 
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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