IND: Rupee Dollar Movement To Decide Further Direction
Rupee opened marginally higher on Wednesday on advancing equities in the local share market and rising euro during early trades against the greenback overseas. The domestic unit opened at Rs. 46.89 per US dollar, almost 6 paise higher as compared to the previous close. However, the early gains seem to be limited as the rupee is seen edging down through the day, currently above 47 per dollar mark.
After a brief gain early today, euro reversed its path and continued to edge lower through the day. The greenback rose following Bernanke's statement that United States economy seemed to have enough momentum to avoid a double-dip recession. Meanwhile, the domestic benchmark indices edged higher in early trade shrugging off weak Asian stocks as revival in monsoon rains underpinned sentiment. The BSE 30-share Sensex was up 46.06 points or 0.28%, up close to 55 points from the day's low and off close to 30 points from the day's high.
The Indian rupee commenced on Wednesday at Rs. 46.89 per US dollar, as per data from CCIL. The domestic unit hit the day's high at 46.89 during early trades and registered an intra day low at 47.20 per dollar, so far during the day. The partially convertible currency was last seen trading at 47.09 at 11.22 AM IST, losing almost 14 paise or 0.29% as compared to previous close at 46.95.
In the domestic currency futures market, the front month June series on NSE commenced Wednesday at around Rs. 47.05 against the US dollar. The contract hit an intra day high at 47.24 and registered the day's low at 46.99 so far during the day. Rupee on NSE was last seen trading at 47.17, down almost 9 paise or 0.19% as compared to previous close at 47.09. Rupee is expected to face intra day resistance at 47.24.
In the domestic bond market, the yield on 10-year benchmark & most traded federal paper 7.80% GS 2020 was almost flat at 7.46% at around 11.25 AM IST, compared to 7.46% at close in the previous trading session. Meanwhile, the second most traded federal paper 8.20 GS 2022 was at 7.85%.
Meanwhile, light sweet crude oil for July delivery rose 7 cents to US$72.06 on the GLOBEX division of New York mercantile exchange.
