Exchange rate 1 USD{$} = 61 Indian Rupees {INR} approx is giving enough advantage for the foreign to buyers to book contracts for products. Prices for Agrochemicals such as guar, tkp etc are set to remain low given the dollar is riding high. The greenback began the week again under a bit of pressure as investors continue to speculate that the Fed will deliver a more dovish tone in the accompanying statement to the interest rate decision on Thursday morning. The greenback was also on the back foot from a strengthening Yen which has firmed following comments from BoJ governor Kuroda that basically indicated that the BoJ has done their bit and it was now up to the government to pass through the structural reforms, the first one being the tax hike; discouraging them from having cold feet and offering no signs that there would be further monetary stimulus. This had the Nikkei 2% lower and has seen the Yen continue to gain against all of its major counterparts with USD/JPY below 98 and EUR/JPY below 130. What this also did though was push some of the USD crosses into oversold territory; the Euro was pushing towards 1.33 and USD/CHF dipped below 0.9275. This seems to have caused a minor rebound in the greenback as investors were keen not to get pushed too far one way as we head into the key events later in the week. The Euro is now trading back at 1.3265 against its US counterpart and seems likely to continue to trade the ranges until later in the week with ECB, FOMC and US employment data key, however we do have some significant German data tonight which may offer short term direction.
Posted on: Wed, 31 Jul 2013 09:41:47 +0000
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