Forex Research -
Open Market Comments
Rupee shed major grounds versus dollar as demand of US currency rose in the open market today. The US dollar commenced new day’s trading at Rs.79/70, recovered more grounds and was trading at Rs.79/85 at close of markets on Thursday. Thus, rupee ended the day on a negative note versus dollar in the kerb market. In the international market, the dollar rose to $1.4151 per pound, from $1.4194 yesterday, before the Bank of England meets on monetary policy today. The U.S. currency advanced to 1.1720 Swiss francs from 1.1676, and climbed to C$1.2776 from C$1.2731.The euro fell, snapping two days of gains versus the yen, on speculation the European Central Bank will cut interest rates today and signal further reductions in borrowing costs to counter the region’s deepening recession.
The euro also headed for a fourth weekly loss versus the dollar before a statistics office report that economists say will reiterate Europe’s economy shrank the most in at least 13 years last quarter. The yen traded near the weakest in four months against the greenback after government data showed Japanese companies slashed spending at the fastest pace in a decade. Global central banks are facing “extraordinary” challenges, ECB President Jean-Claude Trichet said this week.
The euro declined to $1.2614 as of 12:54 p.m. in Tokyo from $1.2661 late in New York yesterday. It dropped to 125.20 yen from 125.52. The yen traded at 99.25 versus the greenback from 99.15 yesterday when it touched 99.49, the weakest level since Nov. 10.
The dollar rose to $1.4151 per pound, from $1.4194 yesterday, before the Bank of England meets on monetary policy today. The U.S. currency advanced to 1.1720 Swiss francs from 1.1676, and climbed to C$1.2776 from C$1.2731.