India Rupee Drops Most in a Month on Speculation Inflows Slowed
The rupee dropped the most in more than a month on speculation capital inflows have slowed after India’s biggest equity offering in a year. Government bonds were little changed.
The government raised 114.7 billion rupees ($2.1 billion) last week, selling a stake in the nation’s biggest power producer NTPC Ltd., the New Delhi-based company’s Chairman Arup Roy Choudhury said Feb. 8. The rupee weakened for a fourth day after the U.S. reported the smallest trade deficit in three years, helping improve demand for the dollar. The Dollar Index, which tracks the greenback against the currencies of six major trading partners, traded near a four-week high.
The rupee declined 0.7 percent to 53.8550 per dollar in Mumbai, the biggest drop since Jan. 4, according to data compiled by Bloomberg. It touched 53.8650 earlier, the lowest level since Jan. 29. The currency fell 0.6 percent in the five days through Feb. 8, snapping a four-week advance.
One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, rose three basis points, or 0.03 percentage point, today to 9.28 percent. Markets in China, Hong Kong, South Korea, Taiwan, Singapore and Malaysia are closed today for the Lunar New Year holiday.
Yen Falls as Policy Comments Boost Depreciation Bets; Euro Gains
The yen fell for the first time in three days against the dollar as Japanese officials reinforced their commitment to policies that may weaken the currency.
Japan’s currency slid against all of its 16 major counterparts after Economy Minister Akira Amariwas reported by Kyodo news as saying the government will continue efforts to push stocks higher, and as one of the potential candidates to head the central bank said additional monetary easing can be justified. The euro advanced from a two-week low against the dollar before ministers from the 17-member currency bloc meet in Brussels today to discuss aid for Cyprus and Greece.
The yen fell 0.6 percent to 93.22 per dollar at 10:33 a.m. London time after jumping 1 percent on Feb. 8. Japan’s currency dropped 0.8 percent to 124.82 per euro. The shared currency strengthened 0.2 percent to $1.3388 after declining to $1.3325, the lowest since Jan. 24.
Analysts estimated the yen will weaken to 95 per dollar and around 130 per euro.
TECHNICAL INSIGHT
USD INR (Feb 13 – Expiry)
USDINR has shown strong recovery from sub-53.5 levels in past few sessions. The pair looks strong in near term. This can be be "Buy on Dips"
Buy near 53.75 SL 53.60 TGT 53.90/54.10/54.25
EUR INR (Feb 13– Expiry)
EURINR is in weak trend, though the pair is getting support at lower levels.
Buy near 72.05 SL 71.90 TGT 72.30/72.45 OR Sell near 72.45 SL 72.65 TGT 72.30/72.05
GBP INR (Feb 13 – Expiry)
GBPINR has failed to sustain at higher levels. This can be considered "Sell on Rise"
Sell near 85.16 SL 85.35 TGT 84.80/84.51/84.35 OR Buy near 84.35 SL SL 84.15 TGT 84.51/84.70/84.80/85
JPY INR (Feb 13 – Expiry)
JPYINR opens "Gap Up" OR "Gap Down" due to high volatility in JPYUSD. It is prudent to take a bet after watching 1st hour of trade.
The rupee dropped the most in more than a month on speculation capital inflows have slowed after India’s biggest equity offering in a year. Government bonds were little changed.
The government raised 114.7 billion rupees ($2.1 billion) last week, selling a stake in the nation’s biggest power producer NTPC Ltd., the New Delhi-based company’s Chairman Arup Roy Choudhury said Feb. 8. The rupee weakened for a fourth day after the U.S. reported the smallest trade deficit in three years, helping improve demand for the dollar. The Dollar Index, which tracks the greenback against the currencies of six major trading partners, traded near a four-week high.
The rupee declined 0.7 percent to 53.8550 per dollar in Mumbai, the biggest drop since Jan. 4, according to data compiled by Bloomberg. It touched 53.8650 earlier, the lowest level since Jan. 29. The currency fell 0.6 percent in the five days through Feb. 8, snapping a four-week advance.
One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, rose three basis points, or 0.03 percentage point, today to 9.28 percent. Markets in China, Hong Kong, South Korea, Taiwan, Singapore and Malaysia are closed today for the Lunar New Year holiday.
Yen Falls as Policy Comments Boost Depreciation Bets; Euro Gains
The yen fell for the first time in three days against the dollar as Japanese officials reinforced their commitment to policies that may weaken the currency.
Japan’s currency slid against all of its 16 major counterparts after Economy Minister Akira Amariwas reported by Kyodo news as saying the government will continue efforts to push stocks higher, and as one of the potential candidates to head the central bank said additional monetary easing can be justified. The euro advanced from a two-week low against the dollar before ministers from the 17-member currency bloc meet in Brussels today to discuss aid for Cyprus and Greece.
The yen fell 0.6 percent to 93.22 per dollar at 10:33 a.m. London time after jumping 1 percent on Feb. 8. Japan’s currency dropped 0.8 percent to 124.82 per euro. The shared currency strengthened 0.2 percent to $1.3388 after declining to $1.3325, the lowest since Jan. 24.
Analysts estimated the yen will weaken to 95 per dollar and around 130 per euro.
TECHNICAL INSIGHT
USD INR (Feb 13 – Expiry)
USDINR has shown strong recovery from sub-53.5 levels in past few sessions. The pair looks strong in near term. This can be be "Buy on Dips"
Buy near 53.75 SL 53.60 TGT 53.90/54.10/54.25
EUR INR (Feb 13– Expiry)
EURINR is in weak trend, though the pair is getting support at lower levels.
Buy near 72.05 SL 71.90 TGT 72.30/72.45 OR Sell near 72.45 SL 72.65 TGT 72.30/72.05
GBP INR (Feb 13 – Expiry)
GBPINR has failed to sustain at higher levels. This can be considered "Sell on Rise"
Sell near 85.16 SL 85.35 TGT 84.80/84.51/84.35 OR Buy near 84.35 SL SL 84.15 TGT 84.51/84.70/84.80/85
JPY INR (Feb 13 – Expiry)
JPYINR opens "Gap Up" OR "Gap Down" due to high volatility in JPYUSD. It is prudent to take a bet after watching 1st hour of trade.
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