RUPEE: NEAR THREE MONTH LOW
Date: 11/04/2012
The Indian rupee extended decline on Wednesday, April 11, 2012 to its lowest level in almost three months, tracking the euro dollar pair that came under pressure overnight, weighed down by surge in European bond yields. The US dollar is seen broadly on the upside as investors shun riskier assets on jitters over global growth prospects, in turn leading rupee lower alongside regional currencies. The domestic currency opened lower by 13 paise at Rs. 51.60 to a dollar, a level last seen on January 16th 2012 and climbed to a high of 51.50, having dipped to a low of 51.64 early during the day. Local equities were also lower tracking pessimism in world markets on account of surging risk aversion.
In the spot currency market, the Indian unit was last seen trading at 51.49 at 10.40 IST, lower by 2 paise or 0.04% as compared to previous close at 51.47.
Domestic benchmark indices edged lower in early trade to hit their lowest level in almost two weeks on weak Asian stocks. Most of the sectoral indices on BSE were in the red. Most Asian shares fell on Wednesday as uncertainty over global growth prospects, and resurfacing worries about debt restructuring in the euro zone, prompted investors to continue trimming their risk exposures. Meanwhile, foreign institutional investors (FIIs) sold Indian shares worth Rs 328.66 crore on Tuesday, as per provisional data from the stock exchanges. At the time of writing, India's key benchmark BSE Sensex is down 117 points at around 17126 while S&P CNX Nifty is lower by 36 points to be at 5207.
The greenback has pared some of its overnight gains during early Asian trades that could provide some support to the regional currencies. However, broadly, US Dollar continues to be on a winning streak journeying in the 1.30 levels against the euro. Jump in Spanish bond yields exacerbated concerns about the fragility of peripheral euro zone economies, while disappointing imports from China kept alive worries about a hard economic landing in the world's second biggest economy. The EURUSD pair slipped to a low of 1.3053 late yesterday but has bounced back to be currently at 1.3105.
In the domestic currency futures market on the NSE, the forwards month 26- April-12 contract opened on Wednesday, April 11, 2012 at 51.78, higher than the spot market rupee. The contract hit an intraday high at 52.00 and registered a low at around 51.68 so far during the day. At the time of writing, the NSE April 2012 USD/INR contract was trading at around 51.69, higher by 4 paise or 0.07% as compared to previous close at 51.66.
Dollar has remained modestly stronger against its Asian counterparts. However, the dollar is seen reversing its gains during early Asian hours today, against the euro. This could lead the USD INR pair to come under slight pressure towards 51.60. On the upside the pair would find ceiling at 51.75.
In the spot currency market, the Indian unit was last seen trading at 51.49 at 10.40 IST, lower by 2 paise or 0.04% as compared to previous close at 51.47.
Domestic benchmark indices edged lower in early trade to hit their lowest level in almost two weeks on weak Asian stocks. Most of the sectoral indices on BSE were in the red. Most Asian shares fell on Wednesday as uncertainty over global growth prospects, and resurfacing worries about debt restructuring in the euro zone, prompted investors to continue trimming their risk exposures. Meanwhile, foreign institutional investors (FIIs) sold Indian shares worth Rs 328.66 crore on Tuesday, as per provisional data from the stock exchanges. At the time of writing, India's key benchmark BSE Sensex is down 117 points at around 17126 while S&P CNX Nifty is lower by 36 points to be at 5207.
The greenback has pared some of its overnight gains during early Asian trades that could provide some support to the regional currencies. However, broadly, US Dollar continues to be on a winning streak journeying in the 1.30 levels against the euro. Jump in Spanish bond yields exacerbated concerns about the fragility of peripheral euro zone economies, while disappointing imports from China kept alive worries about a hard economic landing in the world's second biggest economy. The EURUSD pair slipped to a low of 1.3053 late yesterday but has bounced back to be currently at 1.3105.
In the domestic currency futures market on the NSE, the forwards month 26- April-12 contract opened on Wednesday, April 11, 2012 at 51.78, higher than the spot market rupee. The contract hit an intraday high at 52.00 and registered a low at around 51.68 so far during the day. At the time of writing, the NSE April 2012 USD/INR contract was trading at around 51.69, higher by 4 paise or 0.07% as compared to previous close at 51.66.
Dollar has remained modestly stronger against its Asian counterparts. However, the dollar is seen reversing its gains during early Asian hours today, against the euro. This could lead the USD INR pair to come under slight pressure towards 51.60. On the upside the pair would find ceiling at 51.75.
| RBI REF RATE | ||||
| Date | USD | GBP | EURO | YEN |
| 10-APR-12 | 51.20 | 81.50 | 67.15 | 63.00 |
| % Change* | 0.14 | -0.15 | -0.21 | -0.02 |
| *As against previous working day | ||||
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