India’s foreign exchange reserves rose by USD 684 million for the week ended October 23 to USD 285.520 billion from USD 284.836 billion in the previous week.
Foreign Currency Assets (FCAs), during the period, grew to USD 268.348 billion as against USD 267.898 billion in the week ago, the RBI said in its weekly report today.
FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies such as Euro, Sterling, Yen held in reserves, the RBI said.
Gold reserves, during the week, stood unchanged at USD 10.316 billion, while the Special Drawing Rights (SDRs) stood marginally up at USD 5.267 billion from USD 5.250 billion in the previous week, the central bank said.
India’s reserve position in the International Monetary Fund grew to USD 1.589 billion from USD 1.372 billion in the week-ago, the RBI said.
Forex Analysis - Forex Forecast 03/11/2009
Written by admin on November 3rd, 2009 in Forex Analysis.
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India Tuesday 3 November 2009 -
:: Australian Dollar: The Australian Dollar opens at 0.9022 after a volatile session on Monday. With local equities opening in negative territory the Aussie fell in quick fashion down to an intraday low of US89 cents. However, stronger-than-expected local economic data in the form of third quarter house prices pushed the unit back above US90 cents. The data is one more piece of evidence underpinning the case for further hikes in official interest rates by the Reserve Bank of Australia. Markets have priced in a 25 basis point increase after today’s meeting. Any such announcement will take place at 2:30pm AEDT.
- We expect a range today in the AUD/USD rate of 0.8940 to 0.9060
:: Great Britain Pound: Pound Sterling (1.6380) fell for a second consecutive session ahead of this Thursday’s Bank of England (BoE) policy meeting. During overnight trade, the pound moved between a high of 1.6477 to a session low of 1.6327. Weighing on the pound is the prospect that BoE policy makers may decide to expand asset purchases by 50 billion pounds to 225 billion pounds to help revive the economy. Meanwhile, the pound has lost ground against both the Australian Dollar (1.8160) and the New Zealand Dollar (2.2850).
- We expect a range today in the GBP/AUD rate of 1.8080 to 1.8260
:: New Zealand Dollar: The New Zealand Dollar opens lower at 0.7150 against the greenback today after a volatile session on Monday. The kiwi was sold heavily in early morning trade yesterday down to 0.7080 amid renewed concerns the global recovery may take longer than previously thought. Profit-takers pounced taking the unit to intraday high above US72 cents. Local labour cost data and average hourly earnings are due for release today but are not expected to have a major impact on the currency. Meanwhile, on the cross-rates, the kiwi is trading at 0.7930 against the Australian Dollar.
- We expect a range today in the NZD/USD rate of 0.7100 to 0.7225
:: Majors: The big dollar opens marginally lower against both the Euro (1.4756) and the Japanese Yen (90.36) after better-than-expected economic data releases in the United States overnight. The Institute for Supply Management’s U.S. manufacturing index rose to a 3-year high of 55.7 in October spurred on by a surge in production, whilst pending home sales increased 6.1 per cent in September. Both sets of numbers helped put risk back on the table and increased demand for higher-yielding assets. The U.S. Federal Reserve will release its monetary policy statement on November 4 where borrowing costs are expected to remain unchanged.
Thomas Cook India Forex - US Dollar, Euro up; Pound, Yen down on Tuesday 3 November 2009
Written by admin on November 3rd, 2009 in Thomas Cook India Forex.
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India Tuesday 3 November 2009 : Following are the indicative currency notes and travellers’ cheques buying and selling rates per unit as given by Thomas Cook India here today.
(Figures in Rupees) ——————— Currencies Buy Sell US Dollar 44.30 49.50 Sterling Pound 72.80 80.75 Euro 65.30 72.80 Australian Dollar 40.55 44.70 Bahrain Dinar 116.45 132.70 Canadian Dollar 40.50 45.60 Danish Kroner 08.55 9.95 Egyptian Pound 06.20 08.90 Hong Kong Dollar 05.55 06.55 Japanese Yen/100 48.65 54.15 Jordan Dinar 58.85 68.15 Kuwait Dinar 139.35 166.05 Malaysian Ringgit 12.35 15.00 New Zealand Dollar 31.25 36.10 Norwegian Kroner 07.50 08.70 Omani Rial 113.95 129.65 Qatar Rial 12.05 13.80 Saudi Rial 11.65 13.45 Singapore Dollar 30.80 36.10 South African Rand 05.20 06.25 Swedish Kroner 06.10 07.10 Swiss Francs 43.15 49.60 Syrian Pound 00.35 01.10 Thai Baht/100 129.30 152.40 UAE Dirham 12.00 13.55 Chinese Yuan 05.00 07.80.
India Forex - Rupee down by 4 paise to 47.02 per US dollar on Tuesday 3 November 2009
Written by admin on November 3rd, 2009 in India Forex.
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India Tuesday 3 November 2009 : Paring the gains, the rupee today weakened by four paise to 47.02 against the US dollar in early trade, as against the previous close of 46.98, on fears of fresh capital outflow by foreign funds in line with bearish trend in Asian equity markets, traders at the interbank foreing exchange (Forex) said here.
The partially-convertible rupee had ended 24 paise higher at 46.96/97 against the dollar in the previous session on Friday.
The forex market remained closed yesterday on account of ‘Guru Nanak Jayanti’.
Dealers said the domestic currency came under pressure on fears of capital outflow by foreign funds as market is expected to open lower in tandem with other Asian markets that were trading in negative zone.
However, the dollar’s weakness against some other world currencies capped the rupee’s losses, they added.
The domestic unit was trading in a narrow range between 46.98 and 47.09 in intra-day trade.
Bank of India Forex - Bank of Maharashtra net profit up at Rupees 86.68 crore in Q2
Written by admin on October 31st, 2009 in Bank of India Forex.
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India Saturday 31 October 2009 : Pune-based Bank of Maharashtra has reported a net profit of Rupees 86.68 crore for the second quarter of FY 2009-10 as aginst Rupees 70.55 crore for the corresponding quarter of the previous year.
The Operating Profit and the Net Profit for the half-year ended September 30 increased by 10.39 per cent and 60.84 per cent respectively on year-on-year (Y-o-Y) basis, the Bank said in a staement here.
The growth of profit was attributed to the rise in Total Income, by 18.76 per cent on Y-o-Y basis at Rs 1,302.69 crore as against Rs 1,136.38 crore reported for the same period last fiscal.
Interest Income during Q2 recorded a growth of Rs 79.09 crore (7.36 per cent) at Rs 1,153.22 crore, up from Rs 1,074.13 crore for the quarter ended September 30, 2008.
The Bank witnessed a strong growth of Non-Interest Income by 240.11 per cent on Y-o-Y to Rs 149.47 crore, from Rs 62.25 crore during the corresponding quarter in the previous year.
The Operating Expenses grew marginally by 14.01 per cent on Y-o-Y basis and stood at Rs 497.99 crore as on Septmber 30, 2009, compared to Rs 436.80 crore for the corresponding period of the previous year.
During Q2 of FY 2009-10, the total expenses stood at Rs 254.84 crore as compared to Rs 208.34 crore for the corresponding quarter in the previous year.
Provisions and Contingencies (excluding tax expense) declined by 19.09 per cent on Y-o-Y basis to Rs 162.24 crore, as against Rs 200.52 crore for the first half of last year.
The Bank reported a Business Mix improvement by 21.33 per cent on Y-o-Y to Rs 91,093.62 crore as on September 30, 2009 from Rs 75,080.12 crore for the same period last year.
Total Deposits have increased by 24.60 per cent (Y-o-Y) to Rs 54,452.29 crore as on September 30, 2009 from Rs 43,701.14 crore reported for the corresponding period last year. CASA Deposits constitute 35.97 per cent of the Total Deposits. Gross Advances recorded a growth of 16.77 per cent (Y-o-Y) and stood at Rs 36,641.33 crore during the same period as agaisnt Rs 31,378.98 crore reported for corresponding period last year.
Forex Market in India : Rupee drops before Interest-Rate decision
Written by admin on October 30th, 2009 in Forex Market in India.
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Rupee fell before the central bank’s decision tomorrow on interest rates while importers bought dollars to settle month-end bill payments.
Demand for the US currency probably rose from companies such as Indian Oil Corp, the nation’s largest refiner, after the price of crude oil climbed almost 14 per cent in October, the biggest monthly increase since May. Reserve Bank of India Governor Duvvuri Subbarao will leave the bank’s overnight lending rate, or repurchase rate, unchanged at 4.75 per cent.
Bonds gain
10-year bonds gained for the first time in three days on speculation the central bank will keep its benchmark interest rates at record lows following a quarterly policy review tomorrow.
The nation should maintain an “accommodative” monetary policy until an economic recovery gathers strength, to Prime Minister Manmohan Singh’s economic advisory council chairman C Rangarajan, said last week.
India`s share in Global Forex Market
Written by admin on October 30th, 2009 in Forex Reserve of India.
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Where does India stand in Global Forex Market?
MUMBAI: Where does India stand in the global foreign exchange and derivatives markets?
As per the BIS Triennial Survey on the global foreign exchange and derivatives market activity, the foreign exchange market in India has grown into the 16th largest market in the world in terms of total daily turnover which was US$34 billion in 2007.
The OTC derivatives segment of the foreign exchange market has also increased significantly to register a daily average turnover of USD 24 billion, which is 17th largest among all countries. The daily turnover has increased to US$48 billion in 2007-08.
The Union Finance Minister P Chidambaram himself inaugurated the currency futures trading on Friday at National Stock Exchange in fulfillment of the announcement in his Budget speech that currency futures would be introduced in India this year.
It may be recalled that the preparatory work in this regard had commenced with the setting up of an Internal Group on Currency Futures in RBI as announced in the Annual Policy, April 2007.
The biggest challenge in designing a framework for currency futures in India was the contextual setting in which the foreign exchange market operates in India. There was no ready template available internationally that we could draw upon since most of the countries that have active currency futures markets are those which are relatively more convertible on the capital, according to Shyamala Gopinath, Deputy Governor of Reserve Bank of India.
“The introduction of currency futures, I am sure, will provide further depth and breadth to the market and fulfill their intended objective as an effective risk-management instrument. I urge all the market participants to leverage this significant milestone for skill development within as well as at a broader industry level,” Shyamala Gopinath said.
Forex Analysis : Daily Forecast - 30/10/2009
Written by admin on October 30th, 2009 in Forex Analysis.
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India Friday 30 October 2009 -
Australian Dollar: The Australian Dollar opens higher against the greenback today at 0.9140. The Aussie spent most of the local session beneath US90 cents yesterday but bounced back to life offshore after U.S. economic growth data came in higher than anticipated. The U.S. economy grew at a 3.5 per cent annual pace in the September quarter prompting a rally in stocks and commodities and a move by investors back into high-yielding currencies. During overnight trade, the Aussie moved between 0.8970 and a high of 0.9180. There is no major local economic data scheduled for release today and the Aussie may receive a further boost should local equities follow the strong lead from Wall Street overnight.
- We expect a range today in the AUD/USD rate of 0.9080 to 0.9220
Great Britain Pound: Pound Sterling (1.6535) opens higher for a fourth straight session after a UK report showed mortgage approvals increased more than expected last month. The Bank of England reported that lenders granted 56,215 home loans in September, helping to advance the pound to an intraday high of 1.6603. Also aiding the pound’s cause overnight was strong U.S. GDP data which had investors moving back into high-yielding currencies, therefore weakening the greenback. Meanwhile, the pound is softer against the Australian Dollar (1.8045) and slightly higher against the New Zealand Dollar (2.2550).
- We expect a range today in the GBP/AUD rate of 1.7950 to 1.8200
New Zealand Dollar: The New Zealand Dollar opens higher against its U.S. counterpart at 0.7310 after the Reserve Bank of New Zealand (RBNZ) kept the official cash rate (OCR) steady at 2.50 per cent. The kiwi dropped sharply beneath US72 cents after the announcement as RBNZ Governor Alan Bollard said there was “no urgency to begin withdrawing monetary policy stimulus and we expect to keep the OCR at the current level until the second half of 2010?. In overnight trade, the kiwi moved all the way up to 0.7367 after a U.S. report revealed economic growth surged in the September which spurred demand for high-yielding currencies.
- We expect a range today in the NZD/USD rate of 0.7280 to 0.7400
Majors: The Euro (1.4820) staged its biggest intraday rally since early September as demand for high-yielding currencies returned after U.S. growth data came in higher than expected. After a yearlong contraction and spurred on by government incentives to buy cars and homes, the U.S. economy grew at a 3.5 per cent annual pace in the third quarter prompting a rally in stocks and commodities and a reversal of recent moves in the greenback. In overnight trade, the Euro moved from a low of 1.4682 to an intraday high of 1.4858 soon after the data. With risk back on the agenda overnight, the Japanese Yen also took a tumble and opens at 91.44 (USD/JPY).
Forex Market in India - Review and outlook for the Indian Rupee on Friday 30 October 2009
Written by admin on October 30th, 2009 in Forex Market in India.
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India Friday 30 October 2009: Indian rupee bounced back from near one-month lows on Thursday, halting its slide seen this week, helped by dollar sale by exporters.
The NSE Nov future opened strong and moved higher to 47.75, but rates failed to hold and the pair fell to 47.2725 to close almost at the day’s low on weakness in the dollar globally.
The USD fell during the over night session after the US GDP showed first positive reading in 2009. The growth in the gross domestic product has raised concerns that Fed may become Hawkish in the FOMC meeting due next week and soon end the low rate cycle.
The U.S. economy expanded at a 3.5% annual pace in the third quarter, the Commerce Department estimated Thursday. In the past year, the economy has contracted 2.3%. The economy shrank 0.7% annualized in the second quarter and 6.4% in the first quarter.
The US Dollar index Dec future declined from its intraday high of 76.73, to close the New York session at 76.06. The In the Asian trading session, the dollar index is trading slightly lower compared to previous session’s closing on recovery of the Asian stock indices.
The DJIA closed gaining as much as 2% yesterday supporting the Asian market rally today.
The MSCI Asia Pacific Index added 1.1 percent to 115.97 as of 10:51 a.m. in Tokyo, paring its drop this week to 3 percent.
Japan’s Nikkei 225 Stock Average rose 1.2 percent and the South Korea’s Kospi Index added 0.5 percent. The Nifty Nov future traded on SGX is currently trading up 46.5 points at 4825.
The USD INR spot pair is currently trading at 46.67, down over 51 paise since the previous closing.
Outlook
The USD INR pair is expected to trade lower for the session following weakness in the USD coupled with firm trading in the Indian stock indices.
In the short term USD INR is expected to take guidance from the FOMC meeting due next week. For intraday, we recommend selling the USD INR pair.
India Forex Exchange - Rupee extends gains to 2nd day; Asian units up
Written by admin on October 30th, 2009 in India Forex Exchange.
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India Friday 30 October 2009: The rupee gained for a second session on Friday with higher regional shares and currencies fuelling the rally, but month-end dollar demand from importers could limit the gains.
At 11:08 a.m. (0538 GMT), the partially convertible rupee was at 46.90/92 per dollar, 0.7 per cent stronger than its close of 47.21/22 on Thursday, when it had dropped to as low as 47.6250, its weakest since Oct 5.
“There was a lot of selling in the second half yesterday, today again the offshore flows continue with overall risk appetite picking up globally,” said Madhusudan Somani, head of foreign exchange at Yes Bank.
“The rupee has also appreciated along with other emerging market currencies. Also seeing exporter interest to sell, range looks like 46.75/80 on the lower side while it will face string resistance around 46.98 types,” he added.
Most Asian currencies were stronger compared to the dollar.
The US dollar drifted sideways after retreating against a basket of currencies on Friday as investors waited for more data later in the day which could sour the cheerful sentiment prompted by stronger US growth numbers the previous day.
The BSE Sensex rose more than 1.6 per cent in early trade spurred by a global markets rally with investors cheering United States’ return to economic growth.
Foreign portfolio inflows into local shares are a key driver for the rupee. Foreigners have bought a net $14.4 billion of local equities so far this year, after being sellers of more than $13 billion in 2008.
One-month offshore non-deliverable forward contracts were quoted at 46.93/47.03, little changed from the onshore spot rate.
Tags: Forex Reserves of India
