By -
Jun 12, 2014
India’s rupee dropped to a one-week
low on speculation local refiners boosted dollar purchases to
pay for oil imports after the government reported the widest
trade deficit in ten months.
The trade shortfall was $11.2 billion in May, the most since July, according to official figures released yesterday. Oil imports rose 2.5 percent to $14.5 billion last month, according to the commerce ministry.
“Looks like the oil companies are in the market and that is weighing on the rupee,” said Naveen Raghuvanshi, a Mumbai-based currency trader at DCB Bank Ltd.
The rupee declined 0.1 percent to 59.32 per dollar as of 10:34 a.m. in Mumbai, according to prices from local banks compiled by Bloomberg. The currency touched 59.3625 earlier, the weakest since June 4.
The yield on the 8.83 percent notes due November 2023 slipped one basis point, or 0.01 percentage point, to 8.53 percent, prices from the central bank’s trading system show. A government report due at 5:30 p.m. local time today may show consumer prices rose 8.4 percent in May, after a 8.59 percent gain in April, according to a Bloomberg News survey of analysts.
One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, declined seven basis points to 7.05 percent, data compiled by Bloomberg show.
Three-month offshore non-deliverable forwards were little changed at 60.07 per dollar, according to data compiled by Bloomberg. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
To contact the reporter on this story: Divya Patil in Mumbai at dpatil7@bloomberg.net
To contact the editors responsible for this story: James Regan at jregan19@bloomberg.net Anil Varma, Andrew Janes
The trade shortfall was $11.2 billion in May, the most since July, according to official figures released yesterday. Oil imports rose 2.5 percent to $14.5 billion last month, according to the commerce ministry.
“Looks like the oil companies are in the market and that is weighing on the rupee,” said Naveen Raghuvanshi, a Mumbai-based currency trader at DCB Bank Ltd.
The rupee declined 0.1 percent to 59.32 per dollar as of 10:34 a.m. in Mumbai, according to prices from local banks compiled by Bloomberg. The currency touched 59.3625 earlier, the weakest since June 4.
The yield on the 8.83 percent notes due November 2023 slipped one basis point, or 0.01 percentage point, to 8.53 percent, prices from the central bank’s trading system show. A government report due at 5:30 p.m. local time today may show consumer prices rose 8.4 percent in May, after a 8.59 percent gain in April, according to a Bloomberg News survey of analysts.
One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, declined seven basis points to 7.05 percent, data compiled by Bloomberg show.
Three-month offshore non-deliverable forwards were little changed at 60.07 per dollar, according to data compiled by Bloomberg. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
To contact the reporter on this story: Divya Patil in Mumbai at dpatil7@bloomberg.net
To contact the editors responsible for this story: James Regan at jregan19@bloomberg.net Anil Varma, Andrew Janes
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