The Indian rupee extended its losses further on Tuesday trailing weak equities after a continued spur of sell off by FII's as continued worries over the debt crisis in Europe added volatility in global financial markets. The domestic currency slipped sharply above the Rs. 47 per dollar mark on persistent weakness in the euro currency against the greenback.
The Spanish central bank's takeover of a small savings bank added to worries about economic growth in the euro zone and thereby weighed on the European common currency. Asian stocks also fell sharply on Tuesday, extending an equity sell-off that sent Wall Street lower overnight.
The key benchmark indices slumped in early trade tracking weak Asian stocks. The market breadth was weak. All the sectoral indices on BSE were in the red. All the 30 Sensex stocks fell. The domestic BSE 30-share Sensex was down 220.91 points or 1.34%
The Indian rupee commenced on Tuesday at Rs. 47.28 per US dollar, as per data from CCIL. The domestic unit registered an intra day low at 47.30 per dollar, and hit the day's high at 47.20 so far during the day. The partially convertible currency was last seen trading at 47.24 at 10.53 AM IST, losing almost 0.25 paise or 0.54% as compared to previous day's close at 46.98.
In the domestic currency futures market, rupee for the front month May contract on NSE commenced Tuesday at around Rs. 47.22 against the US dollar. The contract hit an intra day high at 47.18 and registered the day's low at 47.22 so far during the day. Rupee was last seen trading at 47.30, losing almost 0.30 paise or 0.63% as compared to previous close at 47.00. Rupee is expected to face intra day resistance at 47.39.
In the domestic bond market, the yield on 10-year benchmark federal paper 7.80% GS 2020, eased by 3 bps to trade at 7.37% during the morning trade at around 10.50 AM IST compared to yesterday's close of 7.40%. Meanwhile, the yield on most traded paper 8.20% GS 2022 was at 7.63%.
Meanwhile, light sweet crude oil for July delivery declined $1.01 to US$69.20 on the GLOBEX division of New York mercantile exchange.
