Rupee starts new week on a negative note versus dollar in the kerb dealings

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Forex Research - Open Market Comments

The national currency showed a negative trend versus dollar in the open market dealings today. The American currency commenced new week’s trading at its Saturday’s closing rate of Rs.78/80, posted gains on the desk and was trading at Rs.79/00 at close of markets on Monday. Thus, rupee shed 0/20 paisas versus dollar in the kerb market. In the international market, the yen had its biggest advance in almost three weeks against the dollar on speculation Japanese exporters bought the currency after it fell to a one-month low.s

Japan’s currency also snapped a two-day losing streak versus the euro as Asian stocks reversed gains, prompting investors to trim holdings of higher-yielding assets funded in yen. The pound weakened, ending a four-day rally, after the U.K.’s biggest business lobby published a survey showing 63 percent of the nation’s companies said access to credit worsened in the last three months.

“There’s talk that exporters are purchasing the yen,” said Akifumi Uchida, deputy general manager in Tokyo at the marketing unit at Sumitomo Trust & Banking Co., Japan’s fifth- largest bank. “They probably compared the yen’s level today to what it was one month ago, and came into the market to buy.”

The yen rose 0.8 percent to 91.19 per dollar as of 2:55 p.m. in Tokyo from 91.89 late in New York last week, the biggest gain since Jan. 20. It earlier fell to 92.42, the lowest in one month. The currency climbed 0.8 percent to 117.89 per euro from 118.85.

Europe’s single currency traded at $1.2928 from $1.2940 on Feb. 6, and was at 87.76 British pence from 87.52 pence. The pound declined 0.4 percent to $1.4730 from $1.4787.

The Nikkei 225 Stock Average fell 0.9 percent after rising as much as 2.2 percent. Futures on the Standard & Poor’s 500 Index slid 1.6 percent.

The yen advanced versus all of the 16 most-active currencies today. Against the yen, Australia’s dollar fell 2 percent to 60.79, South Africa’s rand declined 2 percent to 9.4081 and New Zealand’s dollar weakened 1.5 percent to 48.09.

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