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

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Forex Research - Open Market Comments

The national currency shed grounds versus dollar in the kerb dealings today amid demand of US currency due to opening day of current week. The American currency started off new day’s trading at Rs.80/50, posted gains on the local desk and was changing hands at Rs.80/60 at close of markets on Monday. Thus, rupee ended the day on a negative note versus dollar in the kerb dealings. In the international market, the yen fell to a six-month low against Australia’s dollar on speculation the global financial crisis is easing, spurring investors to buy higher-yielding assets financed with the Japanese currency.


The yen also declined against the New Zealand dollar on optimism U.S. banks will this week post better quarterly results than some analysts expect, increasing demand for so-called carry trades. The euro traded near a three-week low against the greenback on concern European Central Bank officials will signal this week that they may keep cutting borrowing costs to encourage growth.


“Risk-taking appetite may keep improving as first-quarter earnings at U.S. banks could prove to be good,” said Yuji Saito, head of the foreign-exchange group in Tokyo at Societe Generale SA, France’s third-largest bank. “The bias would be for the yen to be sold” to 101 against the dollar and 132.50 versus the euro today, he said.


The yen dropped to 72.60 against Australia’s dollar as of 1:43 p.m. in Tokyo from 72.13 in New York on April 10. It earlier dropped to 73.10, the lowest level since Oct. 14. Japan’s currency fell to 58.81 per New Zealand dollar from 58.46.


The yen was little changed at 100.43 versus the greenback from 100.30, and was at 132.27 per euro from 132.18. The euro traded at $1.3170 from $1.3189 on April 10 when it reached $1.3090, the lowest level since March 18.


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