Indian Rupee pared gains against the US dollar due to persistent demand from oil companies and other importers while supply from exporters thinned as demand strengthened. The dollar/rupee is not easing too much because good demand. Dollar was narrowly mixed against other majors as market players waited for fresh leads on prospects for the US economy and interest rates. The Euro firmed against the dollar as markets continued to digest European Central Bank interest rate decision and the lack of any signal that borrowing costs in the 15-nation currency zone will fall anytime soon. The EC B's decision to leave rates unchanged at 4.00 percent was widely expected but many markets watchers were anticipation that the central bank would acknowledge the risks of an economic slowdown had accelerated. British pound dipped to 1.9480 as the Bank of England left rates steady at 5.00 percent. The move was in line with expectations but given the continued deterioration in UK economic data there had been some speculation that the Monetary Policy Committee would vote in favor of a 25bp cut. Yen was trading slightly firmer against the U.S. dollar as investors shifted their funds from sluggish stocks to higher yielding currencies.
Friday, May 9, 2008
EVENING REPORT-MAY 9TH
Indian Rupee pared gains against the US dollar due to persistent demand from oil companies and other importers while supply from exporters thinned as demand strengthened. The dollar/rupee is not easing too much because good demand. Dollar was narrowly mixed against other majors as market players waited for fresh leads on prospects for the US economy and interest rates. The Euro firmed against the dollar as markets continued to digest European Central Bank interest rate decision and the lack of any signal that borrowing costs in the 15-nation currency zone will fall anytime soon. The EC B's decision to leave rates unchanged at 4.00 percent was widely expected but many markets watchers were anticipation that the central bank would acknowledge the risks of an economic slowdown had accelerated. British pound dipped to 1.9480 as the Bank of England left rates steady at 5.00 percent. The move was in line with expectations but given the continued deterioration in UK economic data there had been some speculation that the Monetary Policy Committee would vote in favor of a 25bp cut. Yen was trading slightly firmer against the U.S. dollar as investors shifted their funds from sluggish stocks to higher yielding currencies.
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