MARKET HEADLINES
- Dollar gets boost from US data as euro sags below $1.11
The dollar climbed to a
fresh 11-1/2-year high on Wednesday, boosted by strong US
private-sector jobs growth ahead of the launch of quantitative easing
by the European
Central Bank. The dollar hit its highest since
September 2003 against a basket of
currencies and was last up 0.6
per cent at 95.958. Earlier it struck a high of 96.059. The
ADP
National Employment Report showed a gain of 212,000 private-sector
jobs.
Economists surveyed by Reuters had forecast the ADP to show a
gain of 220,000 jobs.
Separately, the Institute for Supply
Management said its services index was 56.9 in February, up slightly
from 56.7 in January. Analysts were looking for a reading of 56.5
for
the sector that makes up the bulk of the US economy, according
to a Reuters poll. "What's
really important now is that we get
a nonfarm print on Friday that comes close to that
235,000 that is
expected, or higher," Sutton said. "That will keep the
expectations for a Fed
interest rate hike fairly near term. For the
US dollar that is key." The euro's low was its
lowest level
against the dollar since September 2003. It last stood at $1.1071,
off 0.92 per
cent for the day and below a key support level, Sutton
said. The euro also declined to one-
month lows against the yen ,
which was flat against the dollar at 119.72 yen. Sterling was
off
0.7 per cent to $1.5259. The ECB is expected to announce details of
its planned 1.1
trillion euro bond-buying program on Thursday, meant
to spur European economies as the
Fed readies to raise rates for the
first time since 2006. The dollar index has gained about
6.3 per
cent so far this year, helped by the US economy's better performance
against other
major economic regions and relatively higher US
yields.
- Rupee recovers 5 paise to 62.20 against dollar in early trade
Snapping its four-day
falling streak, the rupee today recovered by 5 paise to 62.20
against
the US dollar in early trade at the Interbank Foreign
Exchange market on back of selling of
the American currency by
exporters. According to Forex dealers, a higher opening in the
domestic equity market and weakening dollar against other overseas
currencies,
strengthened the rupee. The rupee had lost 33 paise to
close at 62.25 against the dollar
yesterday amid RBI Governor
Raghuram Rajan's comment that an "excessively strong
rupee"
is undesirable as it triggers disinflationary pressures. The
benchmark BSE Sensex
rose by 111.44 points, or 0.37 per cent, to
29,492.17 in early trade today
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