Market News

By Nimesh Vora

The rupee is down just 0.2% this week.
"While we keep making fresh highs (on dollar/rupee), there is no way you can think of a breakout," a currency trader at a banks. "The RBI is doing what it does, and managing the extent of price moves."
The rupee has had to contend with the increase in the tax rate on profit from equity investments, which has impacted foreign investor flows. In the last two sessions, overseas investors have taken out nearly $800 million from equities. Prior to that, these investors had poured in $5 billion in July.

ASIA FX STRUGGLES

Asian currencies and equities were down, weighed by the overnight selloff on Wall Street. The S&P 500 Index suffered its worst day in one-and-half years. The technology dominated Nasdaq Composite fared worst.
The risk-off mood in markets has continued amid US election uncertainty, technology earnings disappointment, and signs of softness in world growth, MUFG Bank said in a note.
The risk aversion prompted a rally on the Japanese yen. U.S. Treasury yields dipped in Asia after inching up on Wednesday.

KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.82; onshore one-month forward premium at 7 paise ** Dollar index down at 104.26 ** Brent crude futures down 0.8% at $81.1 per barrel ** Ten-year U.S. note yield at 4.26% ** As per NSDL data, foreign investors sold a net $185.1mln worth of Indian shares on Jul. 23
** NSDL data shows foreign investors bought a net $294.6mln worth of Indian bonds on Jul. 23