Forex Research -
Open Market Comments
Rupee continued to incur losses versus dollar in the kerb dealings amid rising demand of US currency. The American dollar started off new day’s trading at Rs.80/00, recorded more gains and was trading at Rs.80/20 at close of markets on Tuesday. Thus, rupee gave up 0/20 paisas versus dollar in the open market.
In the international market, the euro rose against the dollar and approached its highest level against the yen this year as Asian stocks extended a global rally, spurring investors to buy higher-yielding assets.
The 16-nation currency gained for a fourth day versus the yen after Handelsblatt reported European Central Bank Executive Board member Juergen Stark said there was limited room for more interest-rate cuts. The yen fell for a sixth day versus the New Zealand dollar as the Group of 20 finance chiefs vowed on the weekend to clean up toxic assets that helped trigger the crisis.
“The backdrop of improving risk appetite is encouraging investors to trim ‘safe-haven’ currency bets,’’ said Danica Hampton, a currency strategist at Bank of New Zealand Ltd. in Wellington. “This is likely to result in a generally weaker dollar and solid demand for yen crosses such as the kiwi-yen,” she said, referring to New Zealand’s dollar by its nickname.
The euro climbed to $1.3009 as of 1:14 p.m. in Tokyo, from $1.2968 late yesterday in New York, when it touched $1.3072, the strongest since Feb. 10. The euro gained 2.2 percent last week, the first weekly advance since early February.