India Rupee - NDF: Dlr rates slump on RBI's move to cut speculation

MUMBAI - The non-deliverable dollar/rupee rates slumped today, as traders
cut their long positions in the greenback after the Reserve Bank of India
announced measures to curtail the recent volatility in the rupee.
According to a notification on the RBI website, companies will no longer
be able to rebook forward contracts already cancelled, irrespective of the
tenure.
In another drastic move, the central bank has decided to cut the
limit of the net overnight open positions of banks. With this step, the RBI
will be successful in cutting banks unhedged currency exposures, which are
transferred to the next day.
Hours after the announcement Thursday, the NDF one-month dollar/rupee
rates dropped to 53.74 rupees a dollar from 54.47 a dollar Wednesday.
"This will basically kill volatility," said a dealer with a European
bank. "NDF arbitrage will also be a problem as there will be less bullets
(dollar limit) to play with," he said.
In the domestic market, despite the wide gap between the local and the
NDF dollar/rupee rates, the investors chose to stay on the sidelines waiting
for the rupee rise to stabilise.
The rupee has appreciated 4% against the dollar from Thursday's low.
.
Indicative levels for dollar/rupee NDF and local forward rates:
.
-----NDF------ ----Local rates----
Tenure Latest Thursday Latest Thursday
1-month 52.93 54.12 52.33 53.80
3-month 53.70 55.15 52.84 54.40
6-month 54.41 55.96 53.57 55.18
1-year 55.37 57.10 56.47 56.15
Closing dollar/rupee NDF rates in Singapore
------------------------------------------------------------------------------
India Rupee - F&O:Dlr rates dn as dlr slips 2% vs rupee in spot mkt
..............................................................................
At 0950 IST Open High Low Previous
Spot dollar/rupee 52.3950 52.9000 52.9000 52.3400 53.6600
1-mo futures on NSE 52.5125 53.1800 53.1825 52.5050 53.8125
1-mo futures on MCX 52.5425 53.2575 53.2575 52.5075 53.8175
1-mo futures on USE 52.5050 52.9425 52.9425 52.5025 53.8075
..............................................................................
MUMBAI--0950 IST--The dollar/rupee rates in the futures market declined
sharply tracking the greenback's more than 2% fall in the spot market.
The dollar lost favour against the rupee as the Reserve Bank of India
Thursday announced measures to curb the sharp depreciation of the Indian
currency.
The RBI reduced the net overnight open position limits of dealers and
also withdrew the facility for companies and foreign investors to rebook
forward contracts once cancelled.
The move will lessen volatility in the currency market as reducing the
limit of overnight open positions will curb speculative activity of banks.
In options, the December call options were most active at a strike price
of 54.0000 rupees a dollar and put options at a strike price of 53.0000
rupees a dollar on the NSE.
.
Volume, Open interest
--------------------------------
Nov futures at 0950 IST NSE MCX USE
Volume 640,925 524,427 16,306
Open Interest 1,221,931 -- 43,848
.
NSE: National Stock Exchange
USE: United Stock Exchange
(Gayatri Thakore)
------------------------------------------------------------------------------
India Rupee: Surges 1.7% on RBI move to curb currency volatility
...............................................................................
At 0917 IST Open High Low Previous
Spot rupee per $1 52.6525 52.9000 52.6150 52.9000 53.6600
...............................................................................
MUMBAI--0917 IST--The rupee surged more than 1.7% against the dollar
today, its biggest gain since May 2010, as measures taken by the Reserve Bank
of India Thursday to curb the Indian currency's fall prompted banks to sell
dollars aggressively.
On Thursday, the RBI reduced the net overnight open position limits of
dealers and also withdrew the facility for companies and foreign investors to
rebook forward contracts once cancelled.
The move to reduce the limit of overnight open position will curb
speculative activity of banks and lessen volatility in the currency market.
The Indian currency opened a massive 76 paisa higher from the previous
close and rapidly gained another 26 paisa in the first 10 minutes of trade.
In the first half of trade, the rupee is expected to move in a narrow
range as dealers will avoid taking large positions ahead of the RBI's
mid-quarter monetary policy review today.
Companies and banks will closely watch the stance and the tone of the
central bank policy statement for further cues.
The Indian unit is expected to trade in the 52.4000-53.0000 rupees per
dollar range today. (Gayatri Thakore)
------------------------------------------------------------------------------
Technical levels for dollar/rupee - Dec 16
MUMBAI - Following are the key support and resistance levels for
dollar/rupee for today, as predicted by leading banks:
.
S1 S2 R1 R2
.
European Bank 52.35 -- 53.00 --
Large PSU bank 52.25 -- 53.00 --
Mumbai-based PSU bank 52.00 -- 53.00 --
Private bank 52.40 -- 53.00 --
.
Notes: S1 = 1st Support, S2 = 2nd support, R1 = 1st resistance, R2 = 2nd
resistance
Names of some banks have been withheld as desired.
.

------------------------------------------------------------------------------
Asia FX: Up; robust US econ data boosts risk appetite
MUMBAI - Asian currencies rose against the US dollar today as
better-than-expected reading of the US jobless claims data released Thursday
improved risk appetite.
According to the US Labor Department, in the week ended Dec 10, initial
jobless claims fell by 19,000 to 366,000.
Positive regional indices also aided the respective Asian currency to
gain. Indonesia's Jakarta Composite rose 0.72% and Philippine's PSEi index
rose 0.30%.
Indonesian rupiah gained also because more foreign inflows is seen in the
country after Fitch Ratings lifted the country's sovereign credit rating to
investment grade.
Some traders avoided large positions as Eurozone sovereign debt
worries still persists, while others settled their positions for year-end
closing.
.
Current rates of key Asian currencies versus US dollar in Asian trade:
.
ASIAN CURRENCY AT 0835 IST PREVIOUS CHANGE IN %
VS US DOLLAR
.
South Korean won 1156.30 1163.00 0.58
Indonesian rupiah 9070.00 9100.00 0.33
Malaysian ringgit 3.1794 3.1850 0.18
Philippine peso 43.9275 44.1000 0.39
Taiwanese dollar 30.3335 30.3700 0.12
Thailand Baht 31.3425 31.3800 0.12
Chinese yuan 6.3497 6.3735 0.37


.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
.


India Rupee - NDF: Dlr rates slump on RBI's move to cut speculation


MUMBAI - The non-deliverable dollar/rupee rates slumped today, as traders
cut their long positions in the greenback after the Reserve Bank of India
announced measures to curtail the recent volatility in the rupee.
According to a notification on the RBI website, companies will no longer
be able to rebook forward contracts already cancelled, irrespective of the
tenure.
In another drastic move, the central bank has decided to cut the
limit of the net overnight open positions of banks. With this step, the RBI
will be successful in cutting banks unhedged currency exposures, which are
transferred to the next day.
Hours after the announcement Thursday, the NDF one-month dollar/rupee
rates dropped to 53.74 rupees a dollar from 54.47 a dollar Wednesday.
"This will basically kill volatility," said a dealer with a European
bank. "NDF arbitrage will also be a problem as there will be less bullets
(dollar limit) to play with," he said.
In the domestic market, despite the wide gap between the local and the
NDF dollar/rupee rates, the investors chose to stay on the sidelines waiting
for the rupee rise to stabilise.
The rupee has appreciated 4% against the dollar from Thursday's low.
.
Indicative levels for dollar/rupee NDF and local forward rates:
.
-----NDF------ ----Local rates----
Tenure Latest Thursday Latest Thursday
1-month 52.93 54.12 52.33 53.80
3-month 53.70 55.15 52.84 54.40
6-month 54.41 55.96 53.57 55.18
1-year 55.37 57.10 56.47 56.15
Closing dollar/rupee NDF rates in Singapore
------------------------------------------------------------------------------
India Rupee - F&O:Dlr rates dn as dlr slips 2% vs rupee in spot mkt
..............................................................................
At 0950 IST Open High Low Previous
Spot dollar/rupee 52.3950 52.9000 52.9000 52.3400 53.6600
1-mo futures on NSE 52.5125 53.1800 53.1825 52.5050 53.8125
1-mo futures on MCX 52.5425 53.2575 53.2575 52.5075 53.8175
1-mo futures on USE 52.5050 52.9425 52.9425 52.5025 53.8075
..............................................................................
MUMBAI--0950 IST--The dollar/rupee rates in the futures market declined
sharply tracking the greenback's more than 2% fall in the spot market.
The dollar lost favour against the rupee as the Reserve Bank of India
Thursday announced measures to curb the sharp depreciation of the Indian
currency.
The RBI reduced the net overnight open position limits of dealers and
also withdrew the facility for companies and foreign investors to rebook
forward contracts once cancelled.
The move will lessen volatility in the currency market as reducing the
limit of overnight open positions will curb speculative activity of banks.
In options, the December call options were most active at a strike price
of 54.0000 rupees a dollar and put options at a strike price of 53.0000
rupees a dollar on the NSE.
.
Volume, Open interest
--------------------------------
Nov futures at 0950 IST NSE MCX USE
Volume 640,925 524,427 16,306
Open Interest 1,221,931 -- 43,848
.
NSE: National Stock Exchange
USE: United Stock Exchange
(Gayatri Thakore)
------------------------------------------------------------------------------
India Rupee: Surges 1.7% on RBI move to curb currency volatility
...............................................................................
At 0917 IST Open High Low Previous
Spot rupee per $1 52.6525 52.9000 52.6150 52.9000 53.6600
...............................................................................
MUMBAI--0917 IST--The rupee surged more than 1.7% against the dollar
today, its biggest gain since May 2010, as measures taken by the Reserve Bank
of India Thursday to curb the Indian currency's fall prompted banks to sell
dollars aggressively.
On Thursday, the RBI reduced the net overnight open position limits of
dealers and also withdrew the facility for companies and foreign investors to
rebook forward contracts once cancelled.
The move to reduce the limit of overnight open position will curb
speculative activity of banks and lessen volatility in the currency market.
The Indian currency opened a massive 76 paisa higher from the previous
close and rapidly gained another 26 paisa in the first 10 minutes of trade.
In the first half of trade, the rupee is expected to move in a narrow
range as dealers will avoid taking large positions ahead of the RBI's
mid-quarter monetary policy review today.
Companies and banks will closely watch the stance and the tone of the
central bank policy statement for further cues.
The Indian unit is expected to trade in the 52.4000-53.0000 rupees per
dollar range today. (Gayatri Thakore)
------------------------------------------------------------------------------
Technical levels for dollar/rupee - Dec 16
MUMBAI - Following are the key support and resistance levels for
dollar/rupee for today, as predicted by leading banks:
.
S1 S2 R1 R2
.
European Bank 52.35 -- 53.00 --
Large PSU bank 52.25 -- 53.00 --
Mumbai-based PSU bank 52.00 -- 53.00 --
Private bank 52.40 -- 53.00 --
.
Notes: S1 = 1st Support, S2 = 2nd support, R1 = 1st resistance, R2 = 2nd
resistance
Names of some banks have been withheld as desired.
.

------------------------------------------------------------------------------
Asia FX: Up; robust US econ data boosts risk appetite
MUMBAI - Asian currencies rose against the US dollar today as
better-than-expected reading of the US jobless claims data released Thursday
improved risk appetite.
According to the US Labor Department, in the week ended Dec 10, initial
jobless claims fell by 19,000 to 366,000.
Positive regional indices also aided the respective Asian currency to
gain. Indonesia's Jakarta Composite rose 0.72% and Philippine's PSEi index
rose 0.30%.
Indonesian rupiah gained also because more foreign inflows is seen in the
country after Fitch Ratings lifted the country's sovereign credit rating to
investment grade.
Some traders avoided large positions as Eurozone sovereign debt
worries still persists, while others settled their positions for year-end
closing.
.
Current rates of key Asian currencies versus US dollar in Asian trade:
.
ASIAN CURRENCY AT 0835 IST PREVIOUS CHANGE IN %
VS US DOLLAR
.
South Korean won 1156.30 1163.00 0.58
Indonesian rupiah 9070.00 9100.00 0.33
Malaysian ringgit 3.1794 3.1850 0.18
Philippine peso 43.9275 44.1000 0.39
Taiwanese dollar 30.3335 30.3700 0.12
Thailand Baht 31.3425 31.3800 0.12
Chinese yuan 6.3497 6.3735 0.37


.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
.