Rupee opened marginally lower on Wednesday at Rs. 46.28 per US dollar as compared to the previous closing as lower domestic and regional equities weighed on the local unit. Global sentiments took a hit after an unexpected decline in US home sales raised concern about the strength of growth in the world's largest economy. Meanwhile the euro against the greenback overseas was also trading lower dipping below the 1.23 levels since yesterday.
Rupee gave up its one-month gain registered on Monday following PBOC announcement to allow greater Yuan exchange rate flexibility. Meanwhile, the euro that had surged to 1.25 against the US dollar on Monday also retreated after investors turned their backs to risky assets and dollar gained safe haven demand.
The key benchmark indices remained weak in mid-morning on lower Asian stocks. The key benchmark BSE 30-share Sensex was down 68.97 points or 0.39%, up close to 50 points from the day's low and off close to 45 points from the day's high.
Rupee commenced on Wednesday at Rs. 46.28 per dollar as per data from CCIL and was seen edging lower so far during the day. Rupee hit the day's high at 46.18 during initial hour and registered the day's low at 46.40. The Indian unit was last seen traded at 46.35 at 11.45 AM IST, down almost 11 paise or 0.24% as compared to its previous closing price at 46.24.
In the domestic currency futures market, the front month June series on NSE commenced Wednesday at around Rs. 46.17 against the US dollar. The contract hit an intra day high at 46.39 and registered the day's low at 46.17 so far during the day. Rupee on NSE was last seen trading at 46.38, down almost 10 paise or 0.22% as compared to previous close at 46.28. Rupee is expected to face intra day resistance at 46.43.
In the domestic bond market, the yield on 10-year benchmark federal paper, 7.80% GS 2020, fell 2 bps to 7.59% as compared to the previous close at 7.57% during the morning trade at around 11.41 AM IST. Meanwhile, the yield on most traded 8.20 GS 2020 was at 7.93%.
Meanwhile, in commodities, light sweet crude oil for August delivery fell 33 cents to US$ 77.52 on the GLOBEX division of New York mercantile exchange. The July contract ended at US$77.82.
