Rupee opens weaker on Wednesday
The rupee opened the session weaker at 46.01/03 compared to its previous close at 45.92 on worries a stocks slide could trigger equity outflows.
By Forex Opening Report, |
The rupee opened the session weaker at 46.01/03 compared to its previous close at 45.92 on worries a stocks slide could trigger equity outflows, and pressured by the dollar's gains against the euro on hopes for higher US interest rates.
Indian shares fell 2.5 per cent to a four-month low yesterday, and there could be more losses today tracking mostly weaker global markets. However rupee went up to 45.92 /93 level in early deals on dollar sales by foreign banks, likely for a corporate client.
Foreign funds pulled about $2.7 billion from Indian stocks in 16 sessions to last Thursday, before turning modest buyers in the two sessions to Monday. Rupee may move in the range of 45.86-46.10.
The dollar slipped against the yen but stayed near a one-month high on Wednesday as investors treaded carefully after the U.S. currency shot up this week on mounting expectations that the Federal Reserve will raise interest rates again this month.
The US currency gained across the board on Tuesday after St. Louis Fed President William Poole was quoted by the Wall Street Journal as saying that a slowing economy on its own may not reduce inflationary pressures.
That echoed remarks by Fed Chairman Ben Bernanke, who sparked a rebound in the dollar on Monday after he said the Fed needed to be vigilant to make sure inflation stays under control. The dollar benefitted as the comments led more people in the market to expect that the central bank will extend its campaign of 16 straight interest rate rises by lifting its overnight rate from 5 percent at its next meeting on June 28-29.
By 0245 GMT, the dollar had slipped to 113.10 yen from around 113.30 yen in late U.S. trade, dragged down by selling of the U.S. currency by Japanese exporters. It struck a one-month high of 113.57 yen on electronic trading platform EBS on Tuesday. The euro was little changed at $1.2830. It was at 145.10 yen, down from around 145.40 yen but in sight of a record high of 145.51.
The dollar was also supported against the euro after euro zone finance ministers made it clear on Tuesday that they didn't want the single currency to extend its export-denting rally much beyond around $1.30.
Forex Capital Services (P) Ltd
Indian shares fell 2.5 per cent to a four-month low yesterday, and there could be more losses today tracking mostly weaker global markets. However rupee went up to 45.92 /93 level in early deals on dollar sales by foreign banks, likely for a corporate client.
Foreign funds pulled about $2.7 billion from Indian stocks in 16 sessions to last Thursday, before turning modest buyers in the two sessions to Monday. Rupee may move in the range of 45.86-46.10.
The dollar slipped against the yen but stayed near a one-month high on Wednesday as investors treaded carefully after the U.S. currency shot up this week on mounting expectations that the Federal Reserve will raise interest rates again this month.
The US currency gained across the board on Tuesday after St. Louis Fed President William Poole was quoted by the Wall Street Journal as saying that a slowing economy on its own may not reduce inflationary pressures.
That echoed remarks by Fed Chairman Ben Bernanke, who sparked a rebound in the dollar on Monday after he said the Fed needed to be vigilant to make sure inflation stays under control. The dollar benefitted as the comments led more people in the market to expect that the central bank will extend its campaign of 16 straight interest rate rises by lifting its overnight rate from 5 percent at its next meeting on June 28-29.
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By 0245 GMT, the dollar had slipped to 113.10 yen from around 113.30 yen in late U.S. trade, dragged down by selling of the U.S. currency by Japanese exporters. It struck a one-month high of 113.57 yen on electronic trading platform EBS on Tuesday. The euro was little changed at $1.2830. It was at 145.10 yen, down from around 145.40 yen but in sight of a record high of 145.51.
The dollar was also supported against the euro after euro zone finance ministers made it clear on Tuesday that they didn't want the single currency to extend its export-denting rally much beyond around $1.30.
Forex Capital Services (P) Ltd
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