Forex Research -
Open Market Comments
Rupee did not show any change versus dollar in the open market dealings today. The US currency commenced new day’s trading at Rs.79/00, remained motionless and was trading at the same price at close of markets on Tuesday. In the international market, the euro fell against the dollar and the yen as a Nikkei newspaper report that Russian banks and businesses may seek to reschedule $400 billion of foreign loans deepened concern financial turmoil in Europe is worsening.
The yen also ended a three-day loss versus the euro after European finance ministers signaled increasing concern that some governments are finding it harder to borrow in financial markets. The dollar strengthened on optimism that the U.S. government’s stimulus and bank-rescue packages will help spur growth in the world’s largest economy.
“The Nikkei report of rescheduling debt is driving the euro lower because European financial institutions have a bigger exposure to Russia than their counterparts in other countries,” said Takashi Kudo, Tokyo-based director of foreign-exchange sales at NTT SmartTrade Inc., a unit of Nippon Telegraph & Telephone Corp., Japan’s largest fixed-line phone company.
The euro fell to $1.2873 as of 11:46 a.m. in Tokyo from $1.3003 late in New York yesterday. Europe’s single currency slipped 0.9 percent to 117.86 yen. The dollar was at 91.56 yen from 91.46 yen. The British pound climbed to 86.70 pence per euro from 87.28 pence. The yen rose 1 percent to 61.42 versus Australia’s dollar and 0.9 percent to 48.81 against New Zealand’s dollar.
The euro weakened versus 12 of the 16 most-active currencies after the Nikkei newspaper said the Russian Association of Regional Banks has submitted a plan to the Russian government for rescheduling loans, citing an interview with Anatoly Aksakov, the head of the association. The group is already in talks with HSBC Holdings Plc and Deutsche Bank AG, the Nikkei reported.