CURRENCY & COMMODITIES VIEW

Major Forex News
 Indian rupee breaches 68/dollar; no RBI intervention seen
Indian rupee breached 68 against the dollar, after hitting an intraday high of 66.27 in afternoon trade.
Aggressive intervention by the Reserve Bank of India (RBI) had helped lift the rupee off its low late last week. It has depreciated around 16 per cent since May, and has fared worse than other emerging market currencies that have been hit since the US Federal Reserve first hinted that it was considering tapering off its bond buying stimulus. The currency is down 2.3 percent in the last two sessions.

COMMODITIES VIEW --->
Market News 
Gold Rises First Time in Four Days on Middle Ease Tension
Gold gained for the first time in four sessions after Israel tested its missile-defense system, fueling concern that tensions in the Middle East will escalate and boosting the appeal of haven assets. Stock and oil markets were rattled by what Israel described as a joint flight test with the U.S. of its Arrow missile-interception system over the Mediterranean Sea. President Barack Obama is stepping up lobbying since saying on Aug. 31 that he would seek the authorization of Congress to attack Syria for alleged use of chemical weapons. Gold climbed 6.3 percent last month, the second straight advance. There is a lot of uncertainty in the air. Gold futures for December delivery rose 0.3 percent to $1,400.50 an ounce at 10:20 a.m. on the Comex in New York. Comex floor trading was closed yesterday for the Labor Day holiday and yesterday’s transactions on the Globex electronic system will be booked with today’s trades for settlement purposes. Prices pared advances after a private report showed expansion for U.S. manufacturing, raising concern that the economy has gained enough traction for the Federal Reserve to cut its stimulus program. The metal has dropped 16 percent this year as some investors lost faith in bullion as a store of value and as demand for an inflation hedge diminished on signs the Fed will taper its bond-buying program. Crude upsurges as Obama Seeks Support on Syria

Crude soared as U.S. President Barack Obama sought support in Congress for a military strike on Syria, bolstering concern that oil shipments from the Middle East will be disrupted. Futures gained as much as 1.1 percent after House Speaker John Boehner told reporters he will back the president’s call for action against Syria in response to the alleged use of chemical weapons. Obama stepped up lobbying today after requesting authorization from Congress on Aug. 31. Prices climbed earlier as Israel said it carried out a missile joint test launch with the U.S. in the Mediterranean Sea.The market is processing what appears to be a slow grind to military action against Syria. The reaction to the Israeli missile test is an example of what we will be seeing until the Syria situation is resolved

WTI crude for October delivery climbed $1.01, or 0.9 percent, to $108.66 a barrel at 1:39 p.m. on the New York Mercantile Exchange. Trading was 2.6 percent above the 100-day average. There was no floor trading yesterday because of the U.S. Labor Day holiday, and yesterday’s electronic transactions will be booked today for settlement purposes.

Natural Gas Futures Climb to Five-Week High on Atlantic Storms
Natural gas futures climbed to a five-week high in New York on concern that storms would disrupt supplies amid hot weather that may stoke demand for the power-plant fuel.
Gas gained as much as 2.8 percent after the National Hurricane Center said low-pressure systems were producing showers and thunderstorms over the Lesser Antilles and Mexico’s Yucatan Peninsula. MDA Weather Services in Gaithersburg, Maryland, predicted above-normal temperatures in the central U.S. through Sept. 17.
These storms are definitely providing a little extra support for the market because there’s concern that they could move into the Gulf. at Price Futures Group in Chicago. It’s pretty warm in the Midwest and the hot temperatures are still boosting cooling demand.