IND: Rupee Hits Fresh 1 Month High On PBOC Measures
Rupee gains to its strongest level in a month, edging under the Rs. 46 per dollar mark after PBOC made an announcement to allow greater Yuan exchange rate flexibility. On Saturday, China announced that it would end the Yuan's 23-month peg against the US dollar and let its currency appreciate gradually citing a global economic recovery and more balanced external trade. The domestic currency opened at Rs 45.75 per dollar, sharply appreciating against the dollar in line with most of the regional peers and a firm start to the domestic equities.
All the sectoral indices on the BSE were in positive zone and the market breadth was strong. The key benchmark 30-share BSE Sensex was up 217.39 points or 1.24%. The key benchmark indices opened sharply higher, boosted by firm Asian stocks. Meanwhile, a strengthening euro overseas against the dollar added further optimism for the domestic unit.
Rupee commenced strong on Monday in the Rs. 45 per dollar area, a level lost last month. As per data from CCIL, the domestic currency opened at 45.75, at a month's high and continued to hover around the level so far during the day. Rupee hit the day's high at 45.58 and registered the day's low at 45.80. The Indian unit was last seen traded at 45.65 at 11.04 AM IST, up almost 53 paise or 1.14% as compared to its previous closing price at 46.18.
In the domestic currency futures market, the front month June series on NSE commenced Monday at around Rs. 45.89 against the US dollar. The contract hit an intra day high at 45.89 during initial trades and registered the day's low at 45.62 so far during the day. Rupee on NSE was last seen trading at 45.67, up almost 56 paise or 1.22% as compared to previous close at 46.24. Rupee is expected to face intra day support at 45.59.
In the domestic bond market, the yield on 10-year benchmark federal paper, 7.80% GS 2020, traded up almost 2 bps at 7.58% during the morning trade at around 11.14 AM IST as compared to Friday's close at 7.56%. Meanwhile, the yield on the most traded 8.20 GS 2020 was at 7.96%.
Meanwhile, light sweet crude oil for July delivery was up US$ 1.45 at US$78.63 on the GLOBEX division of New York mercantile exchange.
