Rupee rebounded early on Wednesday, however after having descended sharply in the previous session, a near two months low reached yesterday. The domestic currency commenced higher by almost 15 paise today, at Rs. 47.20 per dollar on the back of fresh capital inflows by foreign funds. The domestic share market remained firm in morning trade as most Asian stocks rose. Meanwhile, some weakness in dollar against major world currencies also supported the rupee sentiment.
Most Asian stock markets rose Wednesday following a modest rise on Wall Street on Tuesday. Firmness prevailed since morning trade. The BSE 30-share Sensex was around 17977, hovering close to the psychological 18000 mark. In the mean time, the euro lost sharply yesterday, after rising above the 1.30 levels, but unable to hold above the level for long, due to profit-taking ahead of euro zone bank stress test results this week. The single common unit stood near 1.28-29 levels.
Spot rupee started on Wednesday at Rs. 47.20 per dollar, higher by around 15 paise as compared to the previous close at 47.35. The partially convertible currency hit the day's high at 47.16 and registered an intra day low at 47.29 so far during the day, as per data from CCIL. Rupee was last seen trading at 47.26 at 11.36 AM IST, up almost 9 paise or 0.19% as compared to its previous closing price at 47.35.
In the domestic currency futures market on the NSE, the front month July contract opened on Wednesday, at 47.28 per dollar mark, registering a low at around 47.20 and hitting an intra day high at 47.34 so far during the day. Rupee was last seen trading at 47.31, up almost 11 paise or 0.22% as compared to the previous close at 47.41. The contract is expected to find an intra day support at 47.25.
In the domestic bond market, the yield on most traded 10-year benchmark federal paper, 7.80% GS 2020, increased 3 bps to 7.69% at 11.40 AM IST, compared to 7.66% at close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 1445 crore.
Meanwhile, in commodities, light sweet crude oil for September delivery was up 6 cents to US$ 77.64 on the GLOBEX division of New York mercantile exchange. Meanwhile, august contract at expiry was at 76.54.
