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Forex Research - Open Market Comments

A marginal increase in the price of dollar was seen in the open market today as well for the second consecutive day. Dollar which had closed at Rs. 84/00 the other day was changing hands at Rs. 84/05 for buying owing to a slight increase in demand and dollarís rise in the interbank as well as in the international markets. The sentiments however remained in favor of national currency as no major demand persisted with no such chances in the coming sessions too.

According to the market dealers, the activity in currency markets have slightly picked up due to lackluster performance in the stock markets in the past one week or so. Further since dollar has also been showing some gains on the international desks, therefore, rupee is sensing a little pressure. But market is holding sufficient supply and thus is supporting rupee from falling any major grounds.On the international desks, greenback traded higher against the majors in the Monday session, pushing the euro toward the 1.32-figure and edging up against the Canadian dollar around 1.01. The US reports were mixed on the session, which included personal income, personal spending, personal consumption expenditures, construction spending and the April manufacturing ISM. The March personal consumption and income data were largely inline with estimates, printing at 0.5% and 0.3%, respectively. The PCE price index edged up by 0.1% on a monthly basis from a flat reading previously and increasing by 2.0% on an annualized basis. Meanwhile, manufacturing ISM surged to its highest level since June 2004 at 60.4 and beating estimates for an improvement to 60.0 from 59.6 from April.Euro continued to under perform in the local dealings as the European single currency traded just beneath the 1.32-foothold with interim support eyed at 1.3160, followed by 1.3130 and 1.31. The euro continues to remain under pressure despite Sundayís accord to extend a 110 billion euro bailout package for Greece as traders question whether the Greek government will succeed in passing the fiscal austerity measures.With expectations about euro going down further on the international desks; rupee would likely gain more in the coming sessions.


Source : Kalpoint Content Department†


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