Re: {LONGTERMINVESTORS} Tracking the Rupee --- Thread
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RAJESH DESAI
Jul 3, 2012, 2:24:38 AM7/3/12
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MUMBAI: The rupee rose to its strongest level in nearly a month on Tuesday on the back of dollar inflows into domestic equities, following clarity on certain taxation rules and supported by improved sentiment for foreign investments.
At 11:12 a.m., the partially convertible rupee was at 54.96/97 per dollar, after hitting 54.9550, its highest since June 7 and stronger than 55.43/44 at close on Monday.
Portfolio investors have turned bullish after the Indian government released draft rules last week and said the general anti avoidance rules, or GAAR, would not apply retroactively, a big concern for such investors.
On Monday, the rupee strengthened for the third straight session on the back of dollar sales by investors.
Investors are growing more hopeful of meaningful policy reforms at home after Prime Minister Manmohan Singh, a former central bank governor, took charge of the finance ministry.
The government released draft rules on Thursday and said the general anti avoidance rules, or GAAR, would not apply retroactively, a big concern for portfolio investors.
"I think after the clarification on GAAR and P-notes (participatory notes) there have been some inflows. Foreign banks were the major sellers today," said Uday Bhatt, a dealer with state-run UCO Bank.
Traders, however, said the volumes in the market were lower than average due to the central bank's quarterly closing of accounts.
Some traders, however, speculated the central bank may have also stepped in to sell dollars via state-run banks after the rupee slipped towards 56, though the view was held only by a small minority.
The rupee settled at 55.43/44 as per the State Bank of India closing levels, versus 55.6050/6150 at previous close.
--
CA. Rajesh Desai
At 11:12 a.m., the partially convertible rupee was at 54.96/97 per dollar, after hitting 54.9550, its highest since June 7 and stronger than 55.43/44 at close on Monday.
Portfolio investors have turned bullish after the Indian government released draft rules last week and said the general anti avoidance rules, or GAAR, would not apply retroactively, a big concern for such investors.
On Monday, the rupee strengthened for the third straight session on the back of dollar sales by investors.
Investors are growing more hopeful of meaningful policy reforms at home after Prime Minister Manmohan Singh, a former central bank governor, took charge of the finance ministry.
The government released draft rules on Thursday and said the general anti avoidance rules, or GAAR, would not apply retroactively, a big concern for portfolio investors.
"I think after the clarification on GAAR and P-notes (participatory notes) there have been some inflows. Foreign banks were the major sellers today," said Uday Bhatt, a dealer with state-run UCO Bank.
Traders, however, said the volumes in the market were lower than average due to the central bank's quarterly closing of accounts.
Some traders, however, speculated the central bank may have also stepped in to sell dollars via state-run banks after the rupee slipped towards 56, though the view was held only by a small minority.
The rupee settled at 55.43/44 as per the State Bank of India closing levels, versus 55.6050/6150 at previous close.
On Sat, Jun 23, 2012 at 12:09 PM, Manohar Umrigar <umrigar...@gmail.com> wrote:
Rupee could fall to 58 next week, says Kotak Securities analyst
MUMBAI: The Indian rupee touched a record low of 57.32 against the USD, a fall of more than a rupee since Thursday.
Lack of monetary easing from the US Federal Reserve has triggered a run for the US Dollar and selling in equities and commodities globally.
The just concluded French elections and Greek elections did offer a brief respite to US Dollar but lack of policy action from Central banks helped the US Dollar recover, said Anindya Banerjee, Senior Manager Currency Derivatives Research Desk, Kotak Securities.
Markets would keep a close eye on the next week's European Union summit. EU summit is expected to discuss measures on combatting the crises. If concrete measures are not announced, risky assets could see a further sell off and the US Dollar could rally.
On Friday, Indian equities pared losses quite sharply in last couple of hours of trade as both Sensex and Nifty closed marginally lower, Sensex down 60 points @ 16,972 and Nifty down 18.95 points @ 5146.
Over the next week, Banerjee expects the USD/INR to strengthen towards 58.00/58.4 with support around 56.40/50. Nifty is expected to trade within a range of 5000 and 5230.--
Manohar UmrigarOnly Investors make money.
--
CA. Rajesh Desai
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