RUPEE: EXTENDS LOSING STREAK ON FOREIGN FUNDS OUTFLOW
DATE: 27/04/2012
The Indian rupee opened marginally higher on Friday, April 27, 2012, but came off early gains through the day as foreign funds continue to pull money out from the local asset markets following Standard & Poors downgrade on the nations credit-rating outlook. The domestic currency opened higher by 5 paise at Rs. 52.50 to a dollar, but plummeted thereafter to a low of 52.70 so far during the day. Domestic equities also did little to prop up the local currency as concerns about diminishing domestic growth prospects and the widening current-account deficit continued to weigh. Rupee is currently hovering at a three month low.
In the spot currency market, the Indian unit was last seen trading at 52.68, down 13 paise or 0.25% as compared to previous close at 52.55.
Key benchmark indices trimmed gains in morning trade although most Asian shares rose on Friday after the Bank of Japan unveiled fresh easing measures to support the Japanese economy. At the time of writing, Indias key benchmark BSE Sensex is up 50 points at around 17181 while S&P CNX Nifty is higher by 18 points to be at 5207.
The European unit came off its three week high registered in the last couple of days after Standard & Poors hit Spain with a two-notch credit rating downgrade. Standard & Poors cut its credit rating on Spain to BBB-plus from A and gave it a negative outlook, warning it expects the governments budget deficit to deteriorate even more than previously thought due to economic contraction. The country is just two notches away from entering junk territory.
Euro was battered from a high of 1.3262 against the US dollar on Thursday to 1.3176 after being stung by the Spain downgrade. The pair is currently trading at 1.3185, with the single common unit having slightly recovered from the sharp plunge. With the euro under renewed pressure, the dollar index popped up to 79.20, from a 3-1/2 week low of 78.82 tested on Thursday.
In the domestic currency futures market on the NSE, the April contract expired yesterday and was settled at 52.5670. The forwards month 29 May 12 contract opened on Friday, April 27, 2012 at 52.85, higher than the spot market rupee. The contract hit an intraday high at 53.05 and registered a low at around 52.82 so far during the day. At the time of writing, the NSE May 2012 USD/INR contract was trading at around 53.01, up almost 11 paise or 0.20% as compared to previous close at 52.90.
In the spot currency market, the Indian unit was last seen trading at 52.68, down 13 paise or 0.25% as compared to previous close at 52.55.
Key benchmark indices trimmed gains in morning trade although most Asian shares rose on Friday after the Bank of Japan unveiled fresh easing measures to support the Japanese economy. At the time of writing, Indias key benchmark BSE Sensex is up 50 points at around 17181 while S&P CNX Nifty is higher by 18 points to be at 5207.
The European unit came off its three week high registered in the last couple of days after Standard & Poors hit Spain with a two-notch credit rating downgrade. Standard & Poors cut its credit rating on Spain to BBB-plus from A and gave it a negative outlook, warning it expects the governments budget deficit to deteriorate even more than previously thought due to economic contraction. The country is just two notches away from entering junk territory.
Euro was battered from a high of 1.3262 against the US dollar on Thursday to 1.3176 after being stung by the Spain downgrade. The pair is currently trading at 1.3185, with the single common unit having slightly recovered from the sharp plunge. With the euro under renewed pressure, the dollar index popped up to 79.20, from a 3-1/2 week low of 78.82 tested on Thursday.
In the domestic currency futures market on the NSE, the April contract expired yesterday and was settled at 52.5670. The forwards month 29 May 12 contract opened on Friday, April 27, 2012 at 52.85, higher than the spot market rupee. The contract hit an intraday high at 53.05 and registered a low at around 52.82 so far during the day. At the time of writing, the NSE May 2012 USD/INR contract was trading at around 53.01, up almost 11 paise or 0.20% as compared to previous close at 52.90.
| RBI REF RATE | ||||
| Date | USD | GBP | EURO | YEN |
| 26-APR-12 | 52.57 | 85.03 | 69.56 | 64.78 |
| % Change* | -0.16 | -0.44 | -0.45 | -0.43 |
| *As against previous working day | ||||
POWERED BY: COMMODITY INSIGHTS
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