India Rupee:

Sharply up as private cos, FIIs sell dollars
NewsWire18, Thursday, Dec 1
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At 1318 IST Open High Low Previous
Spot rupee per $1 51.5600 51.8500 51.5200 51.8500 52.2000
1-year fwd premium 3.47% 3.37% 3.51% 3.37% 3.15%
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India Rupee: Sharply up as private cos, FIIs sell dollars
MUMBAI--1318 IST--The rupee rose sharply against the dollar, as some
private sector companies and foreign institutional investors sold dollars.
A large engineering company and a petrochemical company were among the
highest sellers of the greenback.
Rise in local shares also aided the market sentiment. The BSE Sensex was
up 3.08% and National Stock Exchange's Nifty up 2.82%. (Aaheli Bagchi)
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India Rupee: Up more as banks sell dollars noting firm shrs, euro
MUMBAI--1225 IST--(51.6500/$1) The rupee extended its gains against the
dollar as banks continued to cut positions in the greenback noting the rise
in euro and local shares. The BSE's Sensex and National Stock Exchange's
Nifty rose nearly 3% each today.
Euro was at $1.3450 as against $1.3444 Wednesday at close in New York.
"All the banks, mainly foreign banks, who were holding long dollar positions
up till now are selling dollars today," said a dealer with a private bank.
Dollar inflows from foreign institutional investors may have also aided the
rupee's rise, dealers said. (Aaheli Bagchi)
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India Rupee: Fwd premiums rise tracking sharp rise in spot rupee
MUMBAI--1200 IST--(51.6500/$1)--Forward dollar/rupee premiums were up, as
traders booked forward contracts tracking the rise in spot rupee.
Market sentiment got a boost after central banks of six major economies
decided to enhance dollar liquidity throughout the global financial system.
The European Central Bank, along with the central banks of Canada, Japan,
UK, Switzerland, and the US, have agreed to cut the dollar liquidity swap
rate by 50 basis points from Dec 5 to Feb 1, 2013.
The cut in dollar borrowing cost prompted many domestic banks to cut
their dollar positions in spot and buy forward contracts at the current
lucrative levels, dealers said.
Most foreign banks were also actively buying forward contracts, dealers
said. The upward bias in premiums is likely to continue through this week.
"The central banks cutting their rates has led to a lot of paying (paying
premiums, booking forward contracts) today," said a dealer with a brokerage
in Mumbai. (Aaheli Bagchi)
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India Rupee - F&O:Dlr futures decline tracking fall in spot dollar
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At 1025 IST Open High Low Previous
Spot dollar/rupee 51.7550 51.8500 51.6800 51.8500 52.2000
1-mo futures on NSE 51.9850 52.0475 52.0650 51.9000 52.2850
1-mo futures on MCX 52.0075 52.2450 52.2450 51.7525 52.3050
1-mo futures on USE 52.0000 51.9675 52.0600 51.9000 52.2850
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MUMBAI--1025 IST--Dollar/rupee rates in the futures market fell today
mirroring the sharp fall in the spot dollar.
The spot dollar fell 0.85% as banks rushed to cut their long positions in
the greenback after central banks of six leading economies unveiled plans to
boost dollar liquidity by cutting dollar borrowing cost.
However, a further fall in dollar/rupee rates was restricted as traders
refrained from taking large positions on expectation of dollar purchases by
oil importers in the spot market.
Volumes remained firm as initial volatility in the spot market provided
good opportunity for traders to arbitrage.
In options, the December call and put options were most active at strike
price of 52.0000 per dollar on the NSE.
.
Volume, Open interest
--------------------------------
Nov futures at 1025 IST NSE MCX USE
Volume 498,303 491,775 37,587
Open Interest 1,714,271 -- 43,643
.
NSE: National Stock Exchange
USE: United Stock Exchange
(Aaheli Bagchi)
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India Rupee: Sharply up as central banks cut dollar borrowing cost
..............................................................................
At 0935 IST Open High Low Previous
Spot rupee per $1 51.7750 51.8500 51.7300 51.8500 52.2000
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MUMBAI--0935 IST--The rupee surged 47 paise against the dollar as banks
aggressively sold dollars on improved risk appetite after central banks of
leading economies announced measures to provide cheaper dollar funding to
European banks to solve the Eurozone debt crisis, dealers said.
"The rupee should strengthen today as many measures have been taken to help
the Eurozone countries," said a dealer at a state-owned bank. "The central banks
of six countries have announced to provide (dollar) liquidity to Eurozone banks,
so the euro may go further high, which should help the rupee."
On Wednesday, the US Federal Reserve, the European Central Bank, and the
central banks of Japan, Britain, Canada and Switzerland agreed to cut pricing of
the existing dollar liquidity swaps by 50 basis points.
The new pricing will be effective from Dec 5 and can be extended until
February 2013.
High-yielding currencies across the globe rose in reaction to this news.
The euro was at $1.3450, slightly up from $1.3444 at close in New York on
Wednesday. In Asia, the South Korean won rose 1.3%, and Malaysian ringgit 1.0%
against the dollar.
Back home, dealers said the rupee is likely to find strong support at
51.9000 per dollar. Dollar sales by exporters and rise in local share indices
may also lift the rupee higher.
The BSE's 30-stock Sensex and National Stock Exchange's 50-stock Nifty
had risen 3% each in early trade.
The rupee is seen moving in the 51.6000-52.0000 per dollar range today.
(Gayatri Thakore)
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India Rupee: Technical levels for dollar/rupee - Dec 1
MUMBAI - Following are the key support and resistance levels for
dollar/rupee for today, as predicted by leading banks:
.
S1 S2 R1 R2
.
Private bank 51.70 51.50 51.90 --
Syndicate Bank 51.60 -- 52.00 --
Large PSU bank 51.70 -- 52.00 --
South-based PSU bank 51.55 -- 51.90 --
IndusInd Bank 51.73 51.62 51.95 52.02
.
Notes: S1 = 1st Support, S2 = 2nd support, R1 = 1st resistance, R2 = 2nd
resistance
Names of some banks have been withheld as desired.
.
(Gayatri Thakore and Aaheli Bagchi)
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India Rupee - Asia FX: Up as central banks cut dollar borrow cost
MUMBAI - All Asian currencies rose against the dollar today on improved
risk appetite after the central banks of six advanced economies announced
plans to enhance liquidity by cutting the borrowing cost of dollars.
In a press release, the European Central Bank said the ECB along with the
central banks of Canada, Japan, England, Switzerland, and US have agreed to
lower pricing of existing dollar liquidity swaps by 50 basis points.
The new pricing will be effective from Dec 5, and can be extended to Feb 1,
2013, the release said.
As a contingency measure, the central banks have also agreed to establish
temporary bilateral liquidity swap arrangements so liquidity can be provided
in each jurisdiction. Through these temporary swap lines the US dollar, yen,
Canadian dollar, euro, and Swiss franc will be easily available between the
central banks.
However, currencies like the South Korean won erased some of gains after
a disappointing Purchase Manager's Index reading in China. According to HSBC
data, the final November PMI fell to a 32-month low of 47.7, as production and
new orders fell indicating a slowdown in China's industrial sector.
.