RUPEE: CLIMBS TO TWO WEEK HIGH
Date: 03/04/2012
The Indian rupee bounced back on Tuesday, April 03, 2012 to its highest level in two weeks, resuming trade after a long three day weekend , backed by strong dollar inflows. The currency market was closed on Monday on account of annual closing of bank accounts. Further, the currency market is shut on Thursday and Friday for local holidays, hence not much volatility is expected. The domestic currency opened at Rs. 50.58 to a dollar and registered a high of 50.52 and a low of 50.62 so far during the day. Positive local equities also supported the domestic currency. In the spot currency market, the Indian unit was last seen trading at 50.57, higher by 29 paise or 0.56% as compared to previous close at 50.85.
EURUSD came under pressure during the early hours of NY session, retreating to a low of 1.3277 amid strong US data. However, the pair has rebounded since then to inch back to a high of 1.3355 and is currently seen at 1.3335. US ISM Manufacturing PMI improved to 53.4 in March as compared with a reading of 52.4 in February and market expectations of 53.3. With the data printing above 50, it in turn suggests that manufacturing sector in the worlds largest economy is continuing to grow. Meanwhile, Fed member Pianalto said that she expects US economy to grow 2.5% in 2012 and 3% in 2013, while further adding that inflation is likely to stay near 2% during the next few years.
Domestic key benchmark indices edged higher to hit highest level in more than 1-1/2 weeks in early trade as most Asian stocks gained. Most Asian markets posted gains on Tuesday after signs of strength in a gauge of US manufacturing. Foreign institutional investors (FIIs) bought Indian shares worth Rs 245.94 crore on Monday, 2 April 2012, as per provisional data from the stock exchanges. At the time of writing, Indias key benchmark BSE Sensex is up 141 points at around 17619 while S&P CNX Nifty is higher by 47 points to be at 5364.
In the domestic currency futures market on the NSE, the forwards month 26- April-12 contract opened on Tuesday, April 03, 2012 at 50.93, higher than the spot market rupee. The contract hit an intraday high at 50.96 and registered a low at around 50.76 so far during the day. At the time of writing, the NSE April 2012 USD/INR contract was trading at around 50.82, lower by 40 paise or 0.78% as compared to previous close at 51.22.
The US dollar is seen reversing its early gains and could hence take the USD INR pair lower to touch 50.74. Moreover, higher local equities are likely to pressurize the pair. However, any rebound in greenback could lead the pair to a possible move towards 50.87.
EURUSD came under pressure during the early hours of NY session, retreating to a low of 1.3277 amid strong US data. However, the pair has rebounded since then to inch back to a high of 1.3355 and is currently seen at 1.3335. US ISM Manufacturing PMI improved to 53.4 in March as compared with a reading of 52.4 in February and market expectations of 53.3. With the data printing above 50, it in turn suggests that manufacturing sector in the worlds largest economy is continuing to grow. Meanwhile, Fed member Pianalto said that she expects US economy to grow 2.5% in 2012 and 3% in 2013, while further adding that inflation is likely to stay near 2% during the next few years.
Domestic key benchmark indices edged higher to hit highest level in more than 1-1/2 weeks in early trade as most Asian stocks gained. Most Asian markets posted gains on Tuesday after signs of strength in a gauge of US manufacturing. Foreign institutional investors (FIIs) bought Indian shares worth Rs 245.94 crore on Monday, 2 April 2012, as per provisional data from the stock exchanges. At the time of writing, Indias key benchmark BSE Sensex is up 141 points at around 17619 while S&P CNX Nifty is higher by 47 points to be at 5364.
In the domestic currency futures market on the NSE, the forwards month 26- April-12 contract opened on Tuesday, April 03, 2012 at 50.93, higher than the spot market rupee. The contract hit an intraday high at 50.96 and registered a low at around 50.76 so far during the day. At the time of writing, the NSE April 2012 USD/INR contract was trading at around 50.82, lower by 40 paise or 0.78% as compared to previous close at 51.22.
The US dollar is seen reversing its early gains and could hence take the USD INR pair lower to touch 50.74. Moreover, higher local equities are likely to pressurize the pair. However, any rebound in greenback could lead the pair to a possible move towards 50.87.
| RBI REF RATE | ||||
| Date | USD | GBP | EURO | YEN |
| | | | | |
| 30-MAR-12 | 51.16 | 81.80 | 68.34 | 62.43 |
| % Change* | -0.02 | -0.47 | -0.17 | -0.66 |
| *As against previous working day | ||||
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