RTTN:Indian Rupee Off 11-day High Against US Dollar
(RTTNews) - The Indian rupee erased some of its early morning gains against the US dollar at the end of Monday's domestic session as the latter firmed up against the euro ahead of some potential risk factors that come into the spotlight in the unfolding week.
Indian shares fell modestly although June inflation numbers added to pressure on the Reserve Bank of India to cut rates at the forthcoming monetary policy review on July 31. India's headline inflation unexpectedly slowed to its lowest level in five months in June at 7.25 percent, mainly driven by lower prices of fuel and manufacturing items.
However, the inflation is still way above the Reserve Bank of India's 6 percent target. Inflation for April has been revised to 7.5 percent as against the provisional 7.23 percent earlier. Economists expected the inflation to average 7.6 percent. The decline is likely to continue with improvement in food supply situation, the Finance Ministry said.
The benchmark 30-share Sensex moved both ways before ending the session near the day's low at 17,103, down 110 points or 0.64 percent from its previous close, while the broader Nifty index fell by 30 points or 0.57 percent to 5,197.
The rupee that advanced to an 11-day high of 54.78 against the dollar pulled back to near 55.40 around the close of the session. Further rally could help re-testing the rupee near the 54.40 resistance level. Any near-term negative sentiment could fetch the domestic unit to reach below the key 56.0 level after a gap of a week.
