Rupee remained relatively flat since early hours on Friday on account of slight losses in the domestic equities and the Euro dollar pair not providing an appropriate direction. The Indian currency opened on the last trading day of the week at Rs. 46.87 per dollar, marginally lower as compared to the previous close and remained within a tight band of 46.82-88 so far during the day.
The domestic currency managed to inch up slightly from the day's start alongside the domestic share market that managed to come off initial lows and edged up in the positive terrain. Asian stocks were lower early following US, with the Dow Jones Industrial Average having closed below 10,000, a day ahead of an expected downward revision in US second-quarter economic growth and ahead of a speech by Federal Reserve Chairman Ben Bernanke. Meanwhile, US first-time claims for unemployment benefits fell by more than expected though the figure still remained at a very high level and continued to underpin the disappointing employment scenario in the country. The BSE 30-share Sensex was up almost 0.11% at 18,226.46.
Most of the regional markets as well as currencies remained mostly mixed awaiting the Federal Reserve chairman's thoughts on the US economy. Ben Bernanke is scheduled to speak at an annual meeting of the world's central bankers in the US state of Wyoming, with market players looking for any clues on his plan to boost measures to support the economy.
The European unit was edging up currently at near 1.2725 levels against the greenback after an initial dip early Thursday to 1.2703 following the grim US economic data. The pair is likely to remain range bound awaiting the Bernanke decision of additional measures to shore up the economy. Meanwhile, the yen fell against the dollar and euro in Asian trading Friday on concerns that the Prime Minister plans to deal with the yen's strength. The Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, edged down 0.03% at 82.91.
Spot rupee commenced on Friday at 46.87, marginally lower as compared to the previous session. The partially convertible currency registered an intra day low at 46.88 and hit an intra day high at 46.82 so far during the day, as per data from CCIL. Rupee was last seen trading at 46.85 by 11.35 AM IST, down by a mere 1 paise or 0.02% as compared to the previous closing price at 46.84.
In the domestic currency futures market on the NSE, the front month August contract due for expiry today opened on Friday at 46.84 per dollar mark. Rupee is likely to volatile today on account of expiry. The contract hit an intra day high at 46.88 and registered a low at around 46.82 so far during the day. Rupee was last seen trading at 46.85, down 1 paise or 0.02% as compared to the previous close at 46.86.
In the domestic bond market, the yield on 10-year benchmark federal paper, 7.80% GS 2020, was trading flat at 8.03% at 11.30 IST, same as at close in the previous trading session. The yield on another major federal paper, 8.13% GS 2022, was nearly steady at 8.01% compared to 8.00% at close in the previous trading session. The yield on US 10-year Treasury note tumbled 6 bps to close at 2.48% on Thursday, on the back of strong results for an auction of 7-year notes, offsetting the pressure from a surprisingly better report on jobless claims.
Meanwhile, in commodities, light sweet crude oil for October delivery was down 3cents to US$ 73.33 on the GLOBEX division of New York mercantile exchange.
