MUMBAI (Commodity Online): Rupee registered a positive start to Wednesday, July 20, 2011 alongside most of its regional peers. The domestic currency opened higher by 5 paise at Rs. 44.45 per dollar trailing domestic shares.
Foreign investors resumed buying Indian shares also aided investor sentiments that led to a positive start to the domestic equities early today. Local shares however came off initial gains and dipped into the negative terrain, taking rupee to a low of 44.48 so far during the day.
Moreover, a declining euro against the greenback may also fail to support the local unit. Rupee, in the spot currency market was last seen trading at 44.47, up mere 4 paise or 0.08% as compared to previous close at 44.50.
Key benchmark indices pared early gains to hit fresh intraday lows in morning trade. The market trimmed gains after a firm start triggered by higher Asian shares that advanced after upbeat earnings reports from US tech firms, on a sharp rise in US housing starts and on signs of progress on talks to lift the US debt ceiling.
FIIs bought Indian shares worth a net Rs 293.29 crore on Tuesday, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) sold shares worth Rs 226.92 crore on that day. At the time of writing, India's key benchmark BSE Sensex edged down 0.16 points at 18653.71 while S&P CNX Nifty also lost 4.20 points at 5609.35.
In the domestic currency futures market on the NSE, the front month July'2011 contract opened on Wednesday at 44.52, higher than spot market rupee. The contract hit an intraday high at 44.58 and registered a low at around 44.50 so far during the day. Meanwhile, euro- rupee contract is down 0.32% at 62.95 from 63.15 in the previous session. The JPY/INR contract inched lower 0.17% to 56.28 from 56.37 while the GBP/INR contract is also down 0.16% at 71.74 from 71.85 at close on Tuesday.
At the time of writing, the NSE as well as MCX July 2011 USD/INR contract was trading at around 44.53 down around 4 paise or 0.08% as compared to previous close at 44.56. Rupee on the contract will likely find an intraday support at 44.47.
