Week in FX Asia – Indian Rupee Falls Again as US Employment Report Beats Expectations

Last week the Indian Rupee touched a historic low (60.80) as fears Fed tapering fears seized the market. Those fears are proving to be founded as on Friday’s Non-farm payroll report the US economy added 195,000 jobs, beating analyst expectations by around 30,000. The INR continues to fall against the USD and is now trading above the 61.10 price level which is now the new historic low for the currency.

Internationally Central Banks from Europe and the United Kingdom maintained their rates with a promise of low rates dispelling fears of a global end of QE. However the US employment announcement benefited the dollar across the board as it is seen as another proof of sustained economic recovery.

The Reserve Bank of India Governor talked to the press before the NFP release and did not add anything beyond the well known mandate of the central bank. Volatility is not their main concern and the CB does not have a price target or a band for the currency. That being said there were rumours last week that the RBI was calling trading desks and asking for a reduction of speculative INR positions.

• China Reiterates Conservative Monetary Policy
• China Becomes Worlds Second Largest Retail Market
• Nikkei Closes at 1 Month High Boosted by ECB and NFP
• Japan Key Economic Index Turns Positive Sparking Hope
• AUD/USD Steady Around 0.9130 Before U.S. Jobs Data
• Fed’s Tapering Impact on Asia
• Research: China Enters Danger Zone as Fed Tapers
• Asia Doesn’t Need High Oil Prices
• China Say Nothing to Hide despite suspension of PMI Data
• Singapore Slated to be Top Financial Hub By 2015
• Japan Tax Revenue in 2012 was a 4 Year High
• BoJ Upgrades Assessment of 8 of 9 Regional Economies
• Australia Needs Population Growth to Achieve Economic Prosperity
• China Banks Suffering From Slower Economic Growth and Credit Squeeze
• Singaporeans most saddled with debt in Asia
• Japanese Strong Economic Indicators Boost Global Stocks
• Asian Stocks Rose as Fed and China Speculation Ran its Course
• China Manufacturing Falls to Four Month Low
• Japan Business Sentiment Rises For First time in Two Years
• RBA Holds Rates Warns About Aussie Fall
• Singapore Home Prices Hit Record High Despite Cooling Measures

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