By -
Jul 14, 2014
Rupee forwards traded offshore rose
the most in almost a week after a report showed factory output
in India grew the most in 19 months.
Industrial production gained 4.7 percent in May from a year earlier after climbing 3.4 percent the previous month, official data showed July 11. Consumer-price inflation probably slowed to 7.7 percent in June from 8.28 percent the previous month, while wholesale-price gains may have decelerated to 5.73 percent from 6.01 percent, according to separate Bloomberg News surveys.
Three-month offshore non-deliverable forwards on the rupee advanced 0.3 percent to 60.75 per dollar as of 9:45 a.m. in Mumbai, according to data compiled by Bloomberg. Forwards are agreements to buy or sell assets at a set price and date. In the spot market, the rupee fell 0.1 percent to 59.9550, prices from local banks compiled by Bloomberg show.
“After the strong industrial production data, the market will keenly watch out for both the wholesale and consumer-price inflation data today,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services Ltd. in Mumbai. “The outcome could influence the direction in which the currency could move this week.”
One-month implied volatility, a measure of expected moves in the exchange rate used to price options, increased 18 basis points, or 0.18 percentage point, to 7.35 percent, according to data compiled by Bloomberg.
To contact the reporter on this story: Kartik Goyal in Mumbai at kgoyal@bloomberg.net
To contact the editors responsible for this story: James Regan at jregan19@bloomberg.net Anil Varma, Andrew Janes
Industrial production gained 4.7 percent in May from a year earlier after climbing 3.4 percent the previous month, official data showed July 11. Consumer-price inflation probably slowed to 7.7 percent in June from 8.28 percent the previous month, while wholesale-price gains may have decelerated to 5.73 percent from 6.01 percent, according to separate Bloomberg News surveys.
Three-month offshore non-deliverable forwards on the rupee advanced 0.3 percent to 60.75 per dollar as of 9:45 a.m. in Mumbai, according to data compiled by Bloomberg. Forwards are agreements to buy or sell assets at a set price and date. In the spot market, the rupee fell 0.1 percent to 59.9550, prices from local banks compiled by Bloomberg show.
“After the strong industrial production data, the market will keenly watch out for both the wholesale and consumer-price inflation data today,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services Ltd. in Mumbai. “The outcome could influence the direction in which the currency could move this week.”
One-month implied volatility, a measure of expected moves in the exchange rate used to price options, increased 18 basis points, or 0.18 percentage point, to 7.35 percent, according to data compiled by Bloomberg.
To contact the reporter on this story: Kartik Goyal in Mumbai at kgoyal@bloomberg.net
To contact the editors responsible for this story: James Regan at jregan19@bloomberg.net Anil Varma, Andrew Janes
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