ForexLive European morning wrap: Pound takes a late hit in an otherwise indifferent session

Forex trading headlines from the European session 2 July RBA leaves rates on hold at 2.75% RBA statement favours weaker aussie dollar Australia's Bowen says economy will benefit from weaker AUD Nikkei closes up 1.78% at 14,098.74 Greece has 3 days to reassure lenders it can deliver on bailout pledges UK Markit construction PMI june: 51.0 vs 51.1 exp   50.8 prev Eurozone PPI may: m/m -0.3% vs -0.2% exp -0.6% prev BOE's Bailey says there has been slippage in banks building capital buffers BOE's Tucker says market reaction to Fed comments was " a warning shot across our bows" BOE's Kohn says monetary tightening in UK is " some way off" Markets really do seem to waiting for Thursday's ECB and BOE decisions and we've had a really quiet morning here too following on from a lifeless Asian session. USDJPY once again had a run up on the back of a firmer Nikkei but failed at 99.90 ahead of the strong 100.00-100.20 resistance which we've been reporting. The pair fell back to 99.63 but looks to have support down there. Yen pairs followed suit. EURUSD tried another attempt on 1.3100 but came second as sovereign wealth funds were seen selling above 1.3070. EURAUD also came in for a slap down to 1.4160 from 1.4220 undermining the euro further with EURGBP dropping to 0.8566. Both pairs have since rebounded as I write. The aussie dollar had come in for a slap after the RBA left rates on hold but spoke in dovish terms again pointing out the benefits of a weaker currency. Cue AUDUSD dropping to 0.9153 from 0.9209 but has since rallied on the EURAUD sales but can't get back above 0.9200. GBPUSD followed EURUSD down but has since dropped further on its own exacerbated by EURGBP buying from 0.8570. Cable trading at 1.5165 being hit in a rush as I type. Hopefully a catalyst for other pairs to pick up the pace for the rest of the day.

Rupee snaps two sessions of gains; late surge in importer dollar demand - The Economic Times

The rupee came off near two-week highs to close lower on Monday, ending a two-day winning streak, as corporate inflows and a strong domestic stock market was outweighed by a late surge in dollar demand from oil importers.

Still, the rupee has recovered substantially from a record low of 60.76 hit on June 26 as a revival of global risk appetite and rumoured inflows related to Unilever's open offer for its Indian unit kept the rupee bid.

Sentiment for the rupee was also supported as provisional data showed foreign institutional investors bought shares worth 11.24 billion rupees ($189.15 million) on Friday, snapping 13 days of sales, though they remained net sellers in debt.

Investors are also hoping the government would soon announce additional economic reforms centering on opening up more sectors for foreign investments after last week approving a hike in domestic gas prices.

"The rupee gained on corporate inflows and NDF (non-deliverable forward) related selling during the first half, but good bids from oil importers pulled down the rupee later," said Hari Chandramgethen, chief of forex trading at South Indian Bank.

"I, however, expect positive sentiment on the rupee this week on likely positive stock sentiment and exporters selling dollars at higher levels."

The Indian rupee closed at 59.51/52, compared with its previous close of 59.385/395. It rose to a session high of 58.9650, a level last seen on June 19.

Several dealers cited flows related to Unilever's $5.4 billion open offer for its Indian unit, which started on June 21.

The rupee was also supported as Indian shares rose for a third consecutive session on Monday to close at their highest in nearly one month.

Flows were matched by a late surge in dollar demand from state-run banks, mainly from oil, and demand from custodian banks.

In the offshore non-deliverable forwards, the one-month contract was at 59.89, while the three-month was at 60.55.

In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 59.81 with a total traded volume of $5.3 billion.