MARKET HEADLINES
Rupee edges up, tracking share gains; flows key
The rupee today opened up and is trading at 63.02/03 versus US dollar at 09: 47 am, led by the gains in markets. Traders expect the rupee to move in a range of 62.80 to 63.50 during the day against the greenback. Funds flow will remain crucial for the intraday direction of the Indian unit, analysts said. Earlier, rupee was by 5o paise, the steepest single day gain in the last seven months, to end the day's trade at 63.11 against the dollar.
Russian rouble slips as Vladimir Putin speech fails to impress
The rouble edged lower against the dollar on Thursday, with traders saying President Vladimir Putin had offered few concrete measures at his end-of-year news conference to pull Russia out of a crisis.The president said Russia's economy would inevitably rebound but provided no clear plan to tackle the crisis that has seen the rouble collapse around 45 per cent against the dollar this year. At 1355 GMT, the rouble was around 1.3 per cent weaker against the dollar at 61.00 after opening more than 1 per cent higher. The rouble was 0.1 per cent stronger versus the euro at 75.05, after falling during Putin's speech. Selling pressure on Thursday was less intense than earlier in the week which saw the rouble fall around 20 per cent against the dollar at one stage on Tuesday, sparking fears of financial meltdown and posing a major challenge for Russia's leadership. The currency has been hit this year by slumping oil prices and Western sanctions over Ukraine, and the central bank's inability to prop it up -- despite two hefty interest rate hikes in the past week -- has raised fears Russia will have to resort to capital controls. Putin, however, said Russia did not plan to order domestic exporters to sell their foreign-currency earnings - in what analysts say would be a form of capital controls - but urged his government and the central bank to work closely with them. He reiterated the central bank should not "burn through" its reserves to support the currency and said the bank should have stopped its forex market interventions a long time ago. If it had, it would not have had to raise its key interest rate in an emergency move this week, he said. "This point restricts the Bank of Russia in the issue of carrying out interventions on the currency market, which could once more be used by market participants in the 'game' against the rouble," analysts at BCS brokerage said in a note. The rouble fell around 10 per cent on Monday, forcing the central bank to hike its key interest rate by an unexpected 650 basis points early on Tuesday, though this provided little support. By Thursday afternoon the rouble had lost 5 per cent against the dollar this week, after a short-lived rebound on Wednesday when the finance ministry said it was selling forex and the central bank announced a broad package of measures to support the banking sector and promised to make more foreign currency available via its repo auctions.
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