Thursday, July 25, 2013

Rupee strengthen, rubber losing ground


The rupee today rose to 58.93 against dollar on fresh dollar selling, it’s highest since 19th June, as banks and exporters, preferred to reduce their dollar position, tracking a weakness in the US currency overseas, amidst measures taken by Reserve Bank of India.

China’s manufacturing weakened further in July, signaling that the worst of the slowdown has yet to be reached, increasing concern that demand may slowdown. July was the third straight month with an under 50 PMI reading, a benchmark that indicates that the sector is contracting. The lower-than-expected PMI data prompted investors to sell rubber. According to experts, China is likely to see a gradual decline in growth in the range of 6.5- 7.5% in 2013, in that case there is a possibility that oil could go down to around $75-80 per barrel. 

On Wednesday, RSS4 grade rubber closed at `.195 a kg at Kottayam. Today, RSS3 grade closed at `.152.92 a kg at Bangkok, while Malaysian SMR20 closed at `.133.87 a kg. On the Tokyo Commodity Exchange, July futures series closed at ¥253, August at ¥251.2, September at ¥252.3, October at ¥252.9, November at ¥254.1 and the contract for delivery in December closed at ¥255.8 a kg. On National Multi Commodity Exchange, natural rubber futures witnessing a negative trend and August futures were trading at `.191, September at `.180.30, October at `.170.99 and November at `.165.50 a kg, at 1.30 pm.

Tyre maker MRF Ltd. has posted a 57% rise in the third quarter net profit at `.227 crore against `.144 crore in the previous corresponding quarter. Total income increased marginally to `.3,051 crore  against `.3,008 crore.

No comments:

Post a Comment