NRI Newsletter - Market News

NRI Newsletter - Market News

MARKET RATES & NEWS - Updated as on 01st August 2014

USD/INR: as on  31st JULY, 2014                                                                                                                           
USD/INR as on  31st JULY, 2014

The Indian rupee slumped to a three-month low on Thursday, hurt by a rally in the dollar in global markets that helped banks into buying greenbacks for corporate- and defence-related payments. The partially convertible rupee fell to as low as 60.57 per dollar at one point, its lowest since April 29, when the currency was in the midst of a rally in the lead-up to the general elections.
The rupee declined 0.63 per cent in July, marking its second consecutive monthly fall, despite foreign investor buying shares and debt worth just over $6 billion, as per official data. The rupee ended at 60.5550 per dollar, down about 0.83 per cent for the day, its biggest single-day fall since June 13.

Open : 60.24  Low : 60.20
High   : 60.57  Close: 60.5550
Highest : 68.85 on  28th August, 2013
Updated as on 1st August @ 10.30 am
Cash/Tom: 3.50/4.50 Cash/Spot:  4.70/6.10
Tom/Spot: 1.20/1.60 Spot/Next: 1.20/1.60

Forward premium (in %  31st JULY, 2014)

1 Month: 8.22/8.60
3 Months: 8.36/8.49
6 Month: 8.36/8.49
12 Months: 8.17/8.20
FORWARDS:  as on 31st JULY, 2014

One year Bench Mark forward premiums closed lower on Wednesday.   The bench mark one year premium closed at 8.38% on Wednesday, against its previous close of 8.45% on Monday.

LIBOR (Updated as on  31st JULY, 2014)

Tenor USD EURO GBP JPY
1Month    0.15600    0.08857 0.50100 0.09357
3 Months 0.23910 0.17714 0.55963 0.13000
6 Months 0.33450 0.26714 0.71338 0.17786
1 Year
0.57960
0.44500
1.06838 0.34286
MAJOR CURRENCIES: as on  31st JULY, 2014

USD:      The dollar strengthened against most major currencies on Thursday as investors bet Friday's July jobs report will come in solid and paint a picture of a more robust U.S. economy. The Labor Department on Friday will release its July nonfarm payrolls report, and consensus forecasts see the U.S. economy picking up 230,000 new jobs. Even if the figure comes in below that number, a reading over 200,000 would represent six straight months of beating that threshold, a sign the labor market is improving even if it's still a little slack. The dollar continued to see support from Wednesday's U.S. gross domestic product report.  The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% at 81.54. On Friday, markets will move on the U.S. nonfarm payrolls and the unemployment reports, while the Institute of Supply Management is to release data on manufacturing activity.
 
 
EUR:           Across the Atlantic, Eurostat, the statistical office of the European Union, revealed that the euro area's consumer price index slowed to a five-year low of 0.4% in July from 0.5% in June, missing expectations for an unchanged reading. The inflation rate fueled expectations for the European Central Bank to implement further stimulus measures to shore up growth and stave off deflationary pressures in the currency bloc. A separate report showed that the unemployment rate across the euro area fell to 11.5% in June from 11.6% last month. It was the lowest rate since September 2012. In U.S. trading on Thursday, EUR/USD was down 0.05% at 1.3389.
 

GBP  
  The greenback was up against the pound, with GBP/USD down 0.17% at 1.6884. In the U.K. earlier, the Nationwide Building Society reported that property values rose 0.1% in July from June, missing market calls for a 0.5% reading, which softened the pound. Property values rose 10.6% on year in July, below expectations for a reading of 11.3%
 
 
GOLD   Gold prices ended the U.S. day session lower on Thursday. Gold also hit a five-week low and closed at a technically bearish monthly low close on Thursday. Some upbeat U.S. economic data released on Thursday and the recently rallying U.S. dollar index that hit a six-month high this week were bearish weights on the gold markets. Spot gold was last quoted down $13.10 at $1,281.75.


Foreign Currencies (Updated:17:30 hrs as on  31st JULY, 2014)

USD/INR : 60.5550

Against

USD

INR

   EUR

                         1.3385

81.05

  GBP

1.6877

 102.20

  JPY

     102.89

 58.85

  AUD

0.9296

        56.29

 


Stock Index
(Updated: as on  
 31st JULY, 2014)
Index 30th July    31st July
BSE Sensex   26087.42 25894.87
NSE Nifty 7791.40 7721.30
DOW Jones 16880.36 16563.30
NASDAQ  4462.90 4369.77



Outlook for the day - 1st August,  2014
 USD/INR is expected to trade in a range between 60.15 to 60.40 with higher bias. In Overseas markets US Dollar may strengthen against the majors.                                
 
Major Economic Data Releases for the Day
 

Date

Time IST

Region

 Description

01.08.2014      13.30   EUR      Zone Manufacturing PMI
01.08.2014 14.00 GBP  Manufacturing PMI
01.08.2014 18.00 USD Unemployment Rate.
 










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