NRI Newsletter - Market News

NRI Newsletter - Market News

MARKET RATES & NEWS - Updated as on 25th JULY 2014

USD/INR: as on  24th JULY, 2014
USD/INR as on  24th JULY, 2014

The Indian rupee ended weaker on Thursday, retreating from a more than one-week high hit earlier in the session on the back of month-end dollar demand from importers. The Rupee had inititally gained on sustained foreign fund inflows into the stock and debt markets and after India on Wednesday allowed foreign institutional investors to hold more government debt while reducing the portion available to long-term investors. Rupee closed at 60.1250 per dollar on Thursday, compared with 60.0975 on Wednesday. The unit hit 59.98 during the session, its strongest since July 14. Overseas buying of shares and debt continued with inflows of $139.5 million and $136.2 million respectively on Wednesday, taking total investments across the two segments to $24.97 billion so far in 2014. Foreign buying is helping prop up share markets, which rose to record highs on Thursday.

Open : 60.01     Low : 59.98
High   : 60.13  Close: 60.1250
Highest : 68.85 on  28th August, 2013
Cash/Tom: 4.00/4.50    Cash/Spot:  6.50/7.75
Tom/Spot: 2.50/3.50 Spot/Next: 1.20/1.60

Forward premium (in %  24th JULY, 2014)

1 Month: 8.42/8.62
3 Months: 8.46/8.59
6 Month: 8.48/8.55
12 Months: 8.20/8.23
FORWARDS:  as on 24th JULY, 2014

Forward premiums were higher on Thursday.  The bench mark one year premium closed at 8.23% against previous close of  8.18% on Wednesday

LIBOR (Updated as on  24th JULY, 2014)

Tenor USD EURO GBP JPY
1Month    0.15425    0.09143 0.49563 0.10000
3 Months 0.23510 0.17857 0.55563 0.13000
6 Months 0.32910 0.26429 0.71531 0.17857
1 Year
0.55710
0.44357
1.07000 0.33857
MAJOR CURRENCIES: as on   24th JULY, 2014

USD:      The dollar traded higher against most major currencies on Thursday, buoyed by data revealed first-time jobless assistance claims fell to eight-year lows, though upbeat factory gauges in Europe sent the euro taking back earlier losses against the greenback. While the Fed is seen closing its monthly bond-buying stimulus program likely in October, uncertainty as to how much time will pass from that point until rate hikes begin makes the dollar move on both positive and negative indicators. A separate report showed that U.S. new home sales dropped by 8.1% to 406,000 units last month, worse than expectations for a decline of 5.3%, pointing to underlying weakness in the housing sector, which capped the dollar's advance. In U.S. trading on Thursday, EUR/USD was up 0.01% at 1.3463. The US Dollar Index which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% at 80.95. On Friday, the U.S. is to round up the week with data on durable goods orders.
 
 
EUR:           Data released on Thursday showed that a preliminary reading of the euro zone manufacturing purchasing managers’ index rose to a two-month high of 51.9 for July, beating market calls for a 51.7 reading. The bloc’s services PMI jumped to a 38-month high of 54.4, beating expectations for a 52.7 reading. Private sector activity in Germany also expanded in July, with the country’s services PMI jumping to a 37-month high. The French service sector also expanded this month, but the contraction in the country's manufacturing sector deepened. Ongoing concerns that conflicts in Ukraine and Gaza will dampen global economic recovery also continued to weighed on EURO.
GBP  
  The greenback was up against the pound, with GBP/USD down 0.34% at 1.6984. The pound softened the Office for National Statistics reported that U.K. retail increased by 3.6% compared with June 2013 and by 0.1% compared with May 2014. Markets were expecting a 3.9% yearly gain and a 0.3% monthly increase. 
 
GOLD    Gold prices ended the U.S. day session solidly lower and hit a four-week low Thursday. Less risk aversion in the market place this week, as evidenced by moves to record or multi-year highs in the U.S. stock indexes, put downside price pressure on the precious metals Thursday. Technical selling also kicked in for gold and silver as sell stops were triggered in the futures markets, to exacerbate the overall selling pressure. Spot gold was last quoted down $14.00 at $1,290.50.


Foreign Currencies (Updated:17:30 hrs as on  24th JULY, 2014)

USD/INR : 60.1250

Against

USD

INR

   EUR

        1.3481   

81.05 

  GBP

1.7015

 102.30

  JPY

     101.64

 59.15

  AUD

0.9444

        56.78

 


Stock Index
(Updated: as on  
 24th JULY, 2014)
Index 23rd July    24th July
BSE Sensex   26147.33      26271.85
NSE Nifty 7795.75 7830.65
DOW Jones 17086.63 17083.80
NASDAQ  4473.70 4472.11



Outlook for the day - 25th July,  2014
 USD/INR is expected to trade in a range between 60.00 to 60.30 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

25.07.2014      13.30 EUR    German Business Climate. 
25.07.2014 14.00 GBP     Prelim GDP data m/m
25.07.2014 18.00 USD  Durable Goods orders.
 
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