Forex Research -
Open Market Comments
Today the National Currency is remained motionless against the Greenback. The American dollar commenced new day’s trading at Rs.83/30, and was unchanged at close of markets on Tuesday. In the International Market the yen rose as traders scaled back bets on higher-yielding currencies and stocks snapped three days of gains, fueling demand for the Japanese currency as a haven. The yen advanced most against the Swedish krona and South African rand as Standard Chartered Plc said it plans to raise $1.69 billion in a share sale and Yamaha Motor Co., the world’s second-largest maker of motor bikes, forecast a wider loss.
The euro weakened versus the dollar after a report showed producer prices fell at a record pace. The Australian dollar fell after the Reserve Bank of Australia kept interest rates at the lowest level in half a century. “Equities are weaker and the yen crosses haven’t broken through the top of their ranges, so people are happy to take a breather from that trade,” said Daragh Maher, deputy head of global foreign-exchange strategy in London at Calyon, the investment-banking unit of Credit Agricole SA. The yen strengthened to 136.38 per euro as of 6:24 a.m. in New York, from 137.31 yesterday, and to 94.71 per dollar, from 95.26.
The euro traded at $1.4396, from $1.4412 yesterday, when it rose to $1.4445, the strongest since Dec. 18. Europe’s Dow Jones Stoxx 600 Index fell 0.8 percent after trading at its highest level relative to profits since 2003. The MSCI World Index declined 0.2 percent. The yen also gained on speculation Japanese exporters are taking advantage of the currency’s decline against the euro and the dollar to bring home income from abroad. The yen has dropped 7.1 percent compared with the euro this year and 4.2 percent versus the dollar.