RUPEE: LINGERS BELOW 52 FOR FOURTH STRAIGHT DAY
DATE: 24/04/2012
The Indian rupee treaded below the Rs 52 per dollar mark for the fourth straight day on Tuesday, April 24, 2012, extending its losses further, as risk appetite sank over fears the euro zone may stay in recession until late in the year. Yesterday, rupee posted its sharpest single session fall in nearly a month. Concerns over growth and a lack of clarity about further interest rate cuts are being compounded by fears about foreign selling on the back of a controversial set of proposed tax rules, dampening capital flows. The domestic currency opened lower by 13 paise at Rs. 52.65 to a dollar and plummeted to a low of 52.87 so far during the day. Local equities were also weary early today oscillating on both sides of the red line, but are seen gathering slight momentum that could revive the domestic unit.
In the spot currency market, the Indian unit was last seen trading at 52.83, off early lows, but down almost 31 paise or 0.59% as compared to previous close at 52.52.
The US dollar registered huge gains late on Monday against most majors as risk fearing investors clutched on to the safe haven currency. The greenback climbed to as much as 1.3013 versus euro as Dutch political turmoil and disappointing euro zone data revived fears the region's debt crisis could keep much of Europe mired in recession through the year. The single common currency came of sharp losses and rebounded to around 1.3154 at the time of writing.
Domestic equity indices are seen moving into the positive terrain for a while post the volatility in morning trade as key benchmark indices alternately moved between positive and negative terrain. Asian markets declined amid volatility on Tuesday after political uncertainty in the euro zone drove US and European stocks lower on Monday following failed budget talks that resulted in the collapse of the Dutch government, stoking fresh fears about Europe's debt problems. Meanwhile, foreign institutional investors (FIIs) sold Indian shares worth Rs 407.49 crore on Monday, as per provisional data from the stock exchanges. At the time of writing, India's key benchmark BSE Sensex is up 63 points at around 17160 while S&P CNX Nifty is higher by 10 points to be at 5210.
In the domestic currency futures market on the NSE, the forwards month 26 April '12 contract opened on Tuesday, April 24, 2012 at 52.62, higher than the spot market rupee. The contract hit an intraday high at 52.92 and registered a low at around 52.62 so far during the day. At the time of writing, the NSE April 2012 USD/INR contract was trading at around 52.87, up by 26 paise or 0.48% as compared to previous close at 52.61.
In the spot currency market, the Indian unit was last seen trading at 52.83, off early lows, but down almost 31 paise or 0.59% as compared to previous close at 52.52.
The US dollar registered huge gains late on Monday against most majors as risk fearing investors clutched on to the safe haven currency. The greenback climbed to as much as 1.3013 versus euro as Dutch political turmoil and disappointing euro zone data revived fears the region's debt crisis could keep much of Europe mired in recession through the year. The single common currency came of sharp losses and rebounded to around 1.3154 at the time of writing.
Domestic equity indices are seen moving into the positive terrain for a while post the volatility in morning trade as key benchmark indices alternately moved between positive and negative terrain. Asian markets declined amid volatility on Tuesday after political uncertainty in the euro zone drove US and European stocks lower on Monday following failed budget talks that resulted in the collapse of the Dutch government, stoking fresh fears about Europe's debt problems. Meanwhile, foreign institutional investors (FIIs) sold Indian shares worth Rs 407.49 crore on Monday, as per provisional data from the stock exchanges. At the time of writing, India's key benchmark BSE Sensex is up 63 points at around 17160 while S&P CNX Nifty is higher by 10 points to be at 5210.
In the domestic currency futures market on the NSE, the forwards month 26 April '12 contract opened on Tuesday, April 24, 2012 at 52.62, higher than the spot market rupee. The contract hit an intraday high at 52.92 and registered a low at around 52.62 so far during the day. At the time of writing, the NSE April 2012 USD/INR contract was trading at around 52.87, up by 26 paise or 0.48% as compared to previous close at 52.61.
| RBI REF RATE | ||||
| Date | USD | GBP | EURO | YEN |
| 23-APR-12 | 52.23 | 84.16 | 68.84 | 64.27 |
| % Change* | -0.44 | -0.74 | -0.64 | -0.89 |
| *As against previous working day | ||||
POWERED BY: COMMODITY INSIGHTS
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