Last Updated on 25/07/2017
NRI Newsletter - Market News

 

DATE: Thursday, 20th April, 2017

USD/INR: as on 19th April, 2017

The rupee staged a mild recovery after two sessions of losses and edged up 5 paise to end at 64.58 a dollar on fresh selling of the American currency by banks and exporters. Stable local equity markets after recent steep fall also helped the domestic unit to strengthen against the greenback, though heavy capital outflows kept forex market sentiment little nervous. A weak dollar overseas trend also weighed on trade. But, most currency traders refrained from taking large positions as geopolitical tensions continue to dampen the mood. The rupee opened a tad higher at 64.60 from overnight closing of 64.63 at the Interbank Foreign Exchange (Forex) Market here and largely traded in a small range with positive bias. It touched a fresh intra-day high of 64.6250 in late afternoon deals before ending at 64.58, revealing a gain of five paise, or 0.08 per cent. The domestic currency had lost 22 paise in last two trading sessions against the dollar. The RBI, meanwhile, fixed the reference rate for the dollar at 64.5443. In cross-currency trade, the rupee plummeted against the pound sterling to finish at 82.99 from 81.85 per pound and dropped further against the euro to end at 69.27 compared to 69.01 earlier. The home unit, however remained firm against the Japanese Yen to settle higher at 59.29 per 100 yens from 59.36 yesterday.

USD/INR as on 19th April, 2017

Currency

OPEN

HIGH

LOW

CLOSE

USDINR

64.60

64.6250

64.50

64.5750

Highest till date: 68.8650 on 24th November, 2016

 

Forward premium(%) as on 19th April, 2017

Periods

1 Mth

3 Mth

6 Mth

12 Mth

Premiums

5.07/5.39

5.13/5.26

5.06/5.12

5.02/5.05










 

 

USD/INR Cash/Tom/Spot Levels: (in Paisa)                                      

(Updated as on 20th April, 2017 @10.00am)

 

Cash/Spot: 2.50/5.50         Cash/Tom: 0.50/1.50

 Tom/Spot: 2.00/4.00         Spot/Next: 0.50/1.50

 

Cash Date:  20th April, 2017 

Tom Date :   21th April, 2017 

Spot Date :    24th April, 2017  

 

 

MAJOR WORLD CURRENCIES: as on 19th April, 2017:

 

USD: The dollar rose against a basket of major currencies on Wednesday, but failed to recover losses sustained in the previous session as geopolitical events weighed on sentiment while a drop in June rate hike expectations capped gains. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.28% to 99.69 by 18:07 EDT (03.37 IST). Geopolitical events continued to play a leading role across markets, after a North Korea official said on Monday, the Kim Jong Un led nation would continue to regularly test missiles.Expectations of a June rate hiked edged lower amid weaker than expected economic data and softer U.S. economic growth expectations, after Treasury Secretary Steven Mnuchin admitted that the Trump administration no longer expects to complete tax reform by August. Meanwhile around 40% of traders expect the Federal Reserve to hike interest rates in June, compared to 52.8% of traders in the previous week.

EUR: “Reports of my death are greatly exaggerated,” the gray-haired but entirely ambulant Mark Twain is alleged to have said while on a European speaking tour in 1897. If the euro could speak, it would undoubtedly say something similar. And it would have ample occasion to do so, since reports of its imminent demise are widespread. The latest vote of no-confidence comes from Ted Malloch, tipped to serve as the Trump Administration’s ambassador to the European Union, who recently opined that he would “short” the euro, which he said could collapse in the next 18 months. Leaving aside what passes these days for diplomacy, there are ample reasons to worry about the euro. The Greek crisis is coming to a head yet again: The IMF and the German government are unable to agree on another bailout for the country, which owes a balloon payment of interest next summer. Elections are looming in Germany, France and possibly Italy, the three big euro-area states. EUR/USD traded at $1.0711 while EUR/GBP added 0.26% to 0.8378, as investors eyed the first round of the French presidential election, scheduled for April 23. The pair traded between 1.0698 and 1.0736 before finally closing at 1.0709.

 

GBP: Sterling hit a six-month high against the dollar, buoyed by expectations that UK Prime Minister Theresa May would comfortably increase her parliamentary majority in the general election, after the British Parliament approved May’s call for an early election. GBP/USD pulled back from six-month highs to trade at $1.2784, down 0.45%. The pair traded between 1.2766 and 1.2860 losing in the after hours until it finally closed at 1.2777.

GOLD: Gold settled lower on Wednesday, extending its decline following the release of a “moderately” positive Federal Reserve’s Beige Book.Spot gold was down 0.76% and trading at $1279.70 at the time of publication. June Comex gold fell 0.98% to $1,281.40 an ounce. The Federal Reserve said on Wednesday that the U.S. economy grew at a modest-to-moderate pace between mid-February and the end of March, with inflation pressures remaining in check. Amid the tussle between US and North Korea the price went as high as 1290.76 until finally settling at 1278.91.

 

 

Outlook for the day (20th April, 2017)

USD/INR is expected to trade in a range between 64.50 and 64.80 with a higher bias. Major currencies are expected to be  lower against the Greenback

 

MAJOR WORLD CURRENCIES:

as on 19th April, 2017

 

CURRENCY

OPEN

HIGH

LOW

CLOSE

EUR/USD

1.0728

1.0736

1.0698

1.0709

GBP/USD

1.2837

1.2860

1.2766

1.2777

AUD/USD

0.7556

0.7563

0.7488

0.7494

USD/JPY

108.40

109.17

108.35

108.85

 

 

Foreign Currencies

(Updated: 17:30 hrs. on 19th April, 2017)

USD/INR: 64.58

Against

USD

INR

1 EUR    =

1.0721

69.24

1 GBP    =

1.2842

82.93

100 JPY  =

0.9181

59.29

1 AUD    =

0.7518

48.55

1 CHF    =

1.0027

64.75

 

 

Precious Metals

(Updated: 17:30 hrs on 19th April, 2017)

 

Gold ($/oz)

1281.66

Silver ($/oz)

18.1900

 

 

 

 

 

Stock Indices

(As on 19th April, 2017)

 

Index Close

19th April

20th April

BSE Sensex

29319.10

29383.08

NSE Nifty

9105.15

9103.50

Dow Jones

20523.28

20404.49

NASDAQ

5849.47

5863.03

 

 

 

Major Economic Data Releases for the Day

Date

Region

Time(IST)

Description

20.04.17

USD

07:00 PM

Phily Fed Manufacturing Index

20.04.17

USD

07:00 PM

Unemployment claims

20.04.17

GBP

10:00 PM

BOE Gov Carney speaks

20.04.17

USD

11:45 PM

Treasury Sec. Mnuchin speaks

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