RUPEE:
WEAKENS ON UNRELENTING EURO ZONE CONCERNS
DATE: 29/05/2012
Unrelenting
worries over the outlook of Euro zone has once again led weakness in the Indian
rupee on Tuesday, May 29, 2012, although the pace of decline is milder with the
currency holding in the Rs 55 per dollar levels so far. The domestic currency
opened lower by 26 paise at Rs 55.44 to a dollar, edged up to a high of 55.42
and dropped to a low of 55.65 until now. The European unit wobbling near a two
year low against the dollar is seen dragging rupee alongside most regional
peers. However, small gains in the domestic equities are likely to limit any
sharp fall in the local currency. In the spot currency market, the Indian unit
was last seen trading at 55.64, lower by around 46 paise or 0.82% as compared
to previous close at 55.19.
Dollar was once again on a winning streak with the euro lingering at a near two year low as concerns about the cost of shoring up Spain's banking system pushed up its debt yields, offsetting a slight easing in worries about Greece. The 10-year Spanish bond yield rose to around 6.5 percent, driving the risk premium on its government debt over German bunds to a euro-era high of 515 basis points, raising fears the euro zone's fourth biggest economy may fall victim to the debt crisis. The single common currency from yesterday's high of 1.2623, slipped to as much as 1.2508 versus the greenback early in Asia today. The pair is currently seen quoting at 1.2533.
Domestic benchmark indices edged higher in early trade to hit their highest level in more than 2-1/2 weeks on mostly higher Asian stocks. The 50-unit S&P CNX Nifty regained psychological 5,000 mark, but came off the level thereafter. Asian stocks rose for the second day in a row on Tuesday, after opinion polls in Greece showed a lead for a party favoring the country's economic bailout in upcoming elections and amid expectations for a policy stimulus in China to support growth. Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 108.89 crore on Monday, 28 May 2012, as per provisional figures. At the time of writing, the BSE Sensex was up 37 points or 0.22% to 16,453 while S&P CNX Nifty was up 5.3 points or 0.41% to 4990.95.
In the domestic currency futures market on the NSE, the forwards month '29 May 12' contract opened at 55.33 on Tuesday, May 29, 2012 higher than the spot market rupee. The contract hit an intraday high at 55.66 and registered a low at around 55.33 so far during the day. At the time of writing, the NSE May 2012 USD/INR contract was trading at around 55.59, higher by around 38 paise or 0.68% as compared to previous close at 55.22.
Dollar was once again on a winning streak with the euro lingering at a near two year low as concerns about the cost of shoring up Spain's banking system pushed up its debt yields, offsetting a slight easing in worries about Greece. The 10-year Spanish bond yield rose to around 6.5 percent, driving the risk premium on its government debt over German bunds to a euro-era high of 515 basis points, raising fears the euro zone's fourth biggest economy may fall victim to the debt crisis. The single common currency from yesterday's high of 1.2623, slipped to as much as 1.2508 versus the greenback early in Asia today. The pair is currently seen quoting at 1.2533.
Domestic benchmark indices edged higher in early trade to hit their highest level in more than 2-1/2 weeks on mostly higher Asian stocks. The 50-unit S&P CNX Nifty regained psychological 5,000 mark, but came off the level thereafter. Asian stocks rose for the second day in a row on Tuesday, after opinion polls in Greece showed a lead for a party favoring the country's economic bailout in upcoming elections and amid expectations for a policy stimulus in China to support growth. Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 108.89 crore on Monday, 28 May 2012, as per provisional figures. At the time of writing, the BSE Sensex was up 37 points or 0.22% to 16,453 while S&P CNX Nifty was up 5.3 points or 0.41% to 4990.95.
In the domestic currency futures market on the NSE, the forwards month '29 May 12' contract opened at 55.33 on Tuesday, May 29, 2012 higher than the spot market rupee. The contract hit an intraday high at 55.66 and registered a low at around 55.33 so far during the day. At the time of writing, the NSE May 2012 USD/INR contract was trading at around 55.59, higher by around 38 paise or 0.68% as compared to previous close at 55.22.
|
RBI REF RATE
|
||||
|
Date
|
USD
|
GBP
|
EURO
|
YEN
|
|
28-MAY-12
|
55.26
|
86.80
|
69.63
|
69.63
|
|
%
Change*
|
0.83
|
0.53
|
0.37
|
0.50
|
|
*As against previous working day
|
||||
POWERED BY: COMMODITY
INSIGHTS
www.goldennifty.com
No comments:
Post a Comment