The Indian rupee started higher on Wednesday buoyed by strong domestic as well as regional stocks and an optimistic global environment. US markets stocks rallied on Tuesday as the euro gained against the dollar after a number of successful European debt auctions eased investor concerns about the euro zone's solvency crisis. The domestic currency started at 46.38 and remained within a tight range of Rs. 46.30-46.40 during the early hours of trading.
The domestic key benchmark indices opened on a buoyant note, extending five-day gains, on strong global cues. The BSE Sensex was now up 66.55 points or 0.38%, off 51 points from the day's high and up 23 points from the day's low.
The Indian rupee opened stronger on Wednesday at Rs. 46.38 per dollar, higher as compared to the previous closing, as per data from CCIL. The domestic unit hit the day's high at 46.34 and registered an intra day low at 46.40 per dollar, so far during the day. The partially convertible currency was last seen trading at 46.39 at 11.42 AM IST, gaining almost 17 paise or 0.37% as compared to previous close at 46.56.
In the domestic currency futures market, the front month June series on NSE commenced Wednesday at around Rs. 46.53 against the US dollar. The contract hit an intra day high at 46.53 and registered the day's low at 46.41 so far during the day. Rupee on NSE was last seen trading at 46.43, up almost 18 paise or 0.36% as compared to previous close at 46.61. Rupee is expected to face intra day support at 46.35.
In the domestic bond market, the yield on most traded 10-year benchmark federal paper, 7.80% GS 2020, eased 5 bps during the morning trade to trade at 7.60% as compared to 7.65% at close in the previous trading session
Meanwhile, light sweet crude oil for July delivery was almost flat at US$76.95 on the GLOBEX division of New York mercantile exchange.
