A lower share market opening as expected could lead to the weakening of the rupee. However, traders feel that the performance of the dollar could indicate the rupee situations too. The MSCI index that is for Asian stocks, at 02:49 GMT was lower by 0.7% while the Nifty stock futures of India in Singapore traded 0.1 % lower, suggesting that the local market had started on a subdued note. The currencies of Asian countries had mixed results even as the index of dollar went up by 0.06% compared to 6 other major currencies. Meanwhile the Euro was hovering around a mark which was at a 7 week high on Wednesday. Smart gains were given by the Australian dollar even as long positions were pared in the US dollar after doubts over the US economic recovery. The rupee which is partially convertible ended at 46.89 per dollar on Tuesday which was 0.2% weaker than the close of 46.78 on Monday. Meanwhile in its July 27th quarterly review, the Reserve Bank of India is likely to increase the interest rates once again. According to a survey, the end of the year rates will supersede the forecast that was given before the unexpected 25 basis points rise on Friday. The Indian rupee was eased on Tuesday owing to the buying of dollar in the local market cheaply only to be sold in the non-deliverable forwards offshore markets at higher rates, taking advantage of the difference in prices. According to a private bank senior dealer in Mumbai, the cheaper rate of dollar in local forwards was the ideal foil for arbitrage. Meanwhile the Australian Dollar did well on the back of the RBA assessment which was upbeat about the global economy. The Swiss franc too touched a 3 month peak against the dollar. The RBA has held its interest rate on Tuesday at 4.5% showing optimism about Asia and the domestic economy as well. The main share index of India, meanwhile ended 1% higher.

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