After forex intervention, RBI may now target oil to save rupee - NDTV

As the rupee plumbs to record lows against the dollar, traders say the Reserve Bank of India could go beyond interventions and target dollar demand from oil companies, an approach that if done right may just help stem the rout.
Having proved unable to contain the rupee's falls via its actions in the forex markets, the RBI was widely reported to have met oil companies this week, and a look at the numbers shows why.
Forex dealers estimate average daily demand for dollars from state-run oil refiners at around $400-500 million, with demand peaking towards the end of the month when they are supposed to make payments.
On Friday, RBI deputy governor Subir Gokarn said the rupee trend was in line wih emerging currencies. "We have talen steps to stabilise the forex market, iwill take more, if needed".
 However,he clarified that intervention and administrative steps would continue.
Targeting oil could succeed, but it will come down to how the RBI does it, traders say.

The RBI is widely seen to have two options: it could open a dollar window for oil companies to buy dollars directly from the central bank or it could purchase oil bonds via special market operations.
RBI opted for the latter in 2008 and then again in 2009 because oil companies back then were holding illiquid bonds. That helped the central bank both inject dollar liquidity and help the sector monetize its debt.
However, 2012 would be different. Oil companies no longer hold much outstanding oil bonds and traders see a far more effective approach if the RBI were to sell dollars directly to the sector.
"The direct dollar window to oil firms can help the rupee recover to around 53.80 per dollar. Oil prices also have come down by 10-15 per cent, that will also help the rupee over the next 30-60 days horizon," a dealer in FX and rates at a private bank said.
Copyright: Thomson Reuters 2012
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Forex - EUR/USD, GBP/USD, EUR/GBP Flows: cross edges into key sell zone? - FXstreet.com

No test on 1.2625 for EUR/USD this week, as the Swiss supranational stands his ground - ahead of 1.2700. Despite negative stocks, the EUR has set its weekly range, and looks to head into the weekend on a 1.2700 handle, though we expect lower levels are not quite done yet. In the options market, we heard topside cover buying going through - though not in significant amounts - but this is unlikely to suggest a near term change in sentiment. Cable was hit pretty sharply just after the London close, losing its 1.5800 handle after posting session highs at 1.5835 earlier in the day. Looking into next week, 1.5650 remains the next key target here, but against the EUR, we feel the recovery is not too far off its limit. .8050-.8100 was (and still is) our key sell zone, and we have made fresh highs into this area on the back of today's Cable losses (1.5730).

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Forex Dominator Review Plus Discount And iPad Bonus Revealed For New System - San Francisco Chronicle (press release)

Forex Dominator review and bonus discount for Cecil Robles new system is revealed. A cash bonus, plus iPad's, are being given at ForexVestor.com.

Houston, TX (PRWEB) May 19, 2012

Cecil Robles' new Forex Dominator system is receiving many raving reviews as the program has almost sold out of the 500 available licenses. The program, which has a software program that offers one a low risk and high reward profit potential, providing them with an 84% accuracy to what the FOREX market is going to do at any given time. Along with training and many bonuses, the system is one of the hottest selling programs of 2012.

Forex Dominator reviews that are coming in on the Internet have been positive and are answering the question of people asking if it is a scam. The big draw of the program is summed up in the tagline, "More money. Less effort. No Guesswork. Minimal risk." The writers at http://ForexVestor.com have completed a through review of the program and have drawn out the pros and the cons.

One can view the whole review at http://forexvestor.com/forex-dominator-system-review.

Also on their site, they are offering an exclusive bonus package for all those who purchase from their site. They are offering a cash discount to all those who buy from their site as well as giving Apple iPads away. One can get all the details and take advantage of the offer by going here: Forex Dominator bonus.

Cecil Robles is one of the few Forex educators who has been in the business for almost a decade. All of his trading programs have been top sellers in the Industry and has one of the best rates of returning customers. Cecil believes in his training so much that he is offering a 45-day money back guarantee on this system, so if someone is not satisfied for any reason they can return it.

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After forex intervention, RBI may now target oil to save rupee - NDTV

As the rupee plumbs to record lows against the dollar, traders say the Reserve Bank of India could go beyond interventions and target dollar demand from oil companies, an approach that if done right may just help stem the rout.
Having proved unable to contain the rupee's falls via its actions in the forex markets, the RBI was widely reported to have met oil companies this week, and a look at the numbers shows why.
Forex dealers estimate average daily demand for dollars from state-run oil refiners at around $400-500 million, with demand peaking towards the end of the month when they are supposed to make payments.
On Friday, RBI deputy governor Subir Gokarn said the rupee trend was in line wih emerging currencies. "We have talen steps to stabilise the forex market, iwill take more, if needed".
 However,he clarified that intervention and administrative steps would continue.
Targeting oil could succeed, but it will come down to how the RBI does it, traders say.

The RBI is widely seen to have two options: it could open a dollar window for oil companies to buy dollars directly from the central bank or it could purchase oil bonds via special market operations.
RBI opted for the latter in 2008 and then again in 2009 because oil companies back then were holding illiquid bonds. That helped the central bank both inject dollar liquidity and help the sector monetize its debt.
However, 2012 would be different. Oil companies no longer hold much outstanding oil bonds and traders see a far more effective approach if the RBI were to sell dollars directly to the sector.
"The direct dollar window to oil firms can help the rupee recover to around 53.80 per dollar. Oil prices also have come down by 10-15 per cent, that will also help the rupee over the next 30-60 days horizon," a dealer in FX and rates at a private bank said.
Copyright: Thomson Reuters 2012
View the original article here

Forex: Kiwi closes at session low vs. dollar - FXstreet.com

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Forex - EUR/USD, GBP/USD, EUR/GBP Flows: cross edges into key sell zone? - FXstreet.com

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FOREX-Euro rallies from 4-month low versus dollar - Reuters

* Traders position ahead of G8 meeting, but expectations low
* Greek politics, Spain bank problems still weigh
* Worries on Europe drive support for dollar, yen

    By Wanfeng Zhou
    NEW YORK, May 18 (Reuters) - The euro rallied from a
four-month low against the dollar on Friday as investors pared
bets against the single currency after a more than 3 percent
drop this month, but concerns about Greece and Spain were likely
to keep it under pressure.
    Positioning ahead of the weekend meeting of the Group of 8
major industrialized nations and technical support also helped,
traders said, as the euro approached its January low of $1.2623.
Gains accelerated after a wave of stops were triggered in the
euro's grind higher.
    Despite Friday's rebound, investors preferred the relative
safety of the U.S. dollar and the Japanese yen as worries about
Europe persisted after Moody's cut the credit ratings of 16
Spanish banks late on Thursday.  
    Some traders said investors were wary of placing bets ahead
of the meeting of the G8, even though expectations were low that
any significant actions would be taken to address the euro zone
debt crisis. Extreme short positioning in the euro, which hit a
record high in the week ended May 15, may have also prompted a
squeeze in short bets.
    Although no economic policy decisions are expected from the
G8, officials said U.S. President Barack Obama hoped to promote
discussion on steps to resolve the euro zone
crisis.
    "Even as position squaring dominates ahead of this weekend's
summit of G8 leaders, strong undercurrents of risk aversion
persist, as a result of which the U.S. dollar remains net bought
on balance," said Samarjit Shankar, managing director of global
FX strategy at BNY Mellon in Boston.
    The euro tumbled to $1.2640, not far from its trough
of 2012, before recovering to trade 0.5 percent higher at
$1.2763. It hit a session peak of $1.2794 after stops were
triggered around $1.2750.
    The euro was still on track for its third straight week of
losses, based on Reuters data. The 14-day exponential relative
strength index posted at 15.526, leaving the euro in oversold
territory since May 7.
    The euro fell to 100.17 yen, its lowest since
early February, before reversing course to trade at 100.97, up
0.3 percent on the day.
    Strong demand for the greenback helped drive the dollar
index to a four-month high early in the global session,
but those gains evaporated.
    Currency speculators increased bets in favor of the U.S.
dollar to the highest level since at least mid-2008, according
to data from the Commodity Futures Trading Commission released
on Friday.
    The value of the dollar's net long position rose to $28.52
billion in the week ended May 15, from $20.95 billion the
previous week.
    "Although the U.S. dollar remains overbought, the
headline-driven market continues to increase the appeal of the
greenback as the turmoil in Europe intensifies," said David
Song, currency analyst at DailyFX.  
   
    SPAIN AND GREECE STILL LEAD THE MARKET
    France's new president, Francois Hollande, said on Friday
Spain's banks should be recapitalized by Europe's bailout funds
and everything must be done to keep Greece in the euro zone.
 
    "If it's not Greece, it's Spain that we talk about to sell
the euro. People are looking for bad news and they are concerned
there appears to be no solution," said Lutz Karpowitz, currency
analyst at Commerzbank in London.
    Greece faces fresh elections on June 17, with many investors
increasingly concerned a victory for anti-bailout parties could
lead to Greece exiting the euro zone.
    A recent poll showed Greece's conservatives have overtaken
the anti-bailout leftist SYRIZA in popularity, although the
volatile political mood meant most analysts saw the outcome of
the elections as a significant risk.
    Worries about Spain's banks and prospects of more state
bailouts for lenders kept the country's borrowing costs high.
    Talk of a ban on naked short-selling of Spanish banking
stocks lifted Europe's bank shares. This brought some
relief for the euro, but the common currency's medium-term
prospects remained bearish.
    Reflecting that, one-month euro/dollar implied volatility
 climbed to around 11.55 percent while three-month risk
reversals - a measure of relative demand for bets on the euro
rising or falling - were at -3.5 vols on trading platform GFI in
favor of more euro weakness.
    The dollar was down 0.4 percent against the yen at
79.02 yen after hitting a three-month low of 78.99, according to
Reuters data. Traders cited stop-loss orders below 79.00 yen and
78.80 yen, while offers were likely to cap dollar gains around
79.50.View the original article here