NRI Newsletter - Market News

NRI Newsletter - Market News

 

DATE: Thursday, 18th December 2014

USD/INR: as on 17th December, 2014
 
The Indian rupee retreated from 13-month lows after the central bank stepped up intervention, while bonds also recovered despite concerns over whether foreign funds will stick with India, one of the star performers this year among emerging markets. Rupee ended the day on Wednesda7yat 63.62 per dollar, weaker than its 63.5350 close on Tuesday. It had earlier weakened to as much as 63.89, its lowest since Nov. 13, 2013. The rupee's initial weakness came after foreign funds sold shares worth $196.56 million on Tuesday, their biggest daily net sales since Oct. 17, and a sixth consecutive day of selling. Foreign investors also turned sellers of debt for the first time in December on Monday, having sold a net $146.56 million.


 
USD/INR as on 17th December, 2014
Currency
OPEN
HIGH
LOW
CLOSE
USD/INR
63.80
63.89
63.49
63.62
Highest till date: 68.85 on 28th August, 2013
 
Forward premium (%) as on 17th December, 2014
Periods
1 Mth
3 Mth
6 Mth
12 Mth
Premiums
7.77/8.10
7.34/7.46
7.11/7.17
6.68/6.72
 
 USD/INR Cash/Tom/Spot Levels: (in Paisa)                                      
 (Updated as on 18th December, 2014 @ 10.00 am )
 
Cash/Spot:            5.00/6.50          Cash/Tom:     1.10/1.60
Tom/Spot:             3.75/4.65          Spot/Next:     1.00/1.50
 
Cash Date                                           18th December’14
Tom Date
Spot Date
         19th  December’14
         22nd  December’14
 
 
 
 
MAJOR WORLD CURRENCIES: as on 17th December, 2014
 
USD:  The dollar shot up against most major currencies on Wednesday after the Federal Reserve delivered an upbeat take on the U.S. economy and used a dovish timetable phrase in a new light, suggesting that rate hikes are on the way though monetary authorities won't rush to act. The Federal Reserve said earlier it was leaving its benchmark interest rate unchanged at 0.00-0.25% and added it will exercise patience when raising interest rates to make sure the economy continues to improve. In past statements, the Fed used to say it would take "considerable time" to make sure recovery is underway before tightening policy. The US Dollar Index which tracks the performance of the greenback versus a basket of six other major currencies was up 1.27% at 89.18. On Thursday, the U.S. is to release data on initial jobless claims and manufacturing activity in the Philadelphia region.
 
 
EUR: The euro slid as investors flocked to safe-haven dollar positions on Wednesday post Federal Reserve's statement on interest rates and monetary policy. In U.S. trading, EUR/USD was down 0.85% at 1.2341, up from a session low of 1.2320 and off a high of 1.2515. Eurostat, the statistical office of the European Union, reported earlier that consumer price inflation in the euro zone fell 0.2% in November, in line with market expectations, after a flat reading in October.
 
 
GBP : Post FED’s FOMC statement the pound slid against the dollar on Wednesday after investors remained camped out in greenback. In U.S. trading on Wednesday, GBP/USD was down 0.88% at 1.5574, up from a session low of 1.5543 and off a high of 1.5756. In the U.K., the Office for National Statistics reported earlier that the unemployment rate held steady at 6.0% in the three months to October, beating expectations for a tick down to 5.9%.
 
 
 
 
 
GOLD: Gold prices were modestly higher in afternoon U.S. trading on Wednesday, following the much-anticipated FOMC statement that was deemed a bit more dovish than expected. On the day there was also some safe-haven demand for gold amid this week’s steep slide in the Russian ruble. Spot gold was last up $5.50 at $1,201.00 on Wednesday.
 
Outlook For The Day (18th December, 2014)
USD/INR is expected to trade in a range between 63.15 to 63.45 with lower bias. In Overseas markets US Dollar may strengthen against the majors.
 
 
 
MAJOR WORLD CURRENCIES:
as on  17th December, 2014
 
CURRENCY
OPEN
HIGH
LOW
CLOSE
EUR/USD
1.2510
1.2515
1.2320
1.2341
GBP/USD
1.5748
1.5756
1.5543
1.5574
AUD/USD
0.8217
0.8235
0.8104
0.8140
JPY/USD
116.39
118.89
116.29
118.64
 
Foreign Currencies  
(Updated: 17:30 hrs on 17th December, 2014)
 
USD/INR 63.62
Against
        USD
           INR
1 EUR    =
1.2544
79.70
1 GBP    =
1.5738
100.00
100 JPY  =
115.77
54.88
1 AUD    =
0.8244
52.38
1 CHF    =
0.9574
66.36
 
 
Precious Metals 
(Updated: 17:30hrs on 17th December, 2014)
 
Gold ($/oz)
1200.80
Silver ($/oz)
    15.88
 
 
Stock Indices
(As on 17th December, 2014)
 
Index Close
16th December
17th December
BSE Sensex
26781.44
26710.13
NSE Nifty
  8067.60
  8029.80
Dow Jones
17068.84
17356.87
NASDAQ
  4605.16
  4644.31
 
 
 
    Major Economic Data Releases for the Day
Date
Region
Time(IST)
Description
18.12.2014
EUR
14.30
German IFO business Climate.
18.12.2014
UK
15.00
Retail Sales m/m
18.12.2014
USD
19.00
Jobless Claims data.
 
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/Suggestions may be freely emailed to feddeal@iobnet.co.in