Rupee ends weaker, gold rises on marriage season demand
Rupee gave up early gains to end slightly weaker on Monday after suspected central bank intervention and dollar buying by oil firms led banks to unwind some short postions in the dollar, traders said.
By Agencies |
MUMBAI: Rupee gave up early gains to end slightly weaker on Monday after suspected central bank intervention and dollar buying by oil firms led banks to unwind some short postions in the dollar, traders said.
The partially-convertible rupee ended at 39.335/345 per dollar, off an intraday high of 39.275 and down from the previous close of 39.32/33.
Oil , which is India's biggest import, traded close to $95 a barrel. High oil prices raise the risk of widening the trade deficit, which was nearly $65 billion in fiscal 2006/07, and that could weaken the rupee. "Intervention shook sentiment and started a scramble for dollars," a trader with a state-run bank said.
The Reserve Bank of India (RBI) bought a record $11.87 billion in intervention in September to check the rupee's rise to its highest levels in almost 10 years, and analysts said it played an active role in October and into November as well. Traders said a few banks bought dollars towards the end of trade on behalf of foreign funds.
Foreigners have bought more than $17 billion of stocks in 2007, well above the $10.7 billion record inflow for the whole of 2005. However, so far this month they have been net sellers of more than $100 million of shares.
The partially-convertible rupee ended at 39.335/345 per dollar, off an intraday high of 39.275 and down from the previous close of 39.32/33.
Oil , which is India's biggest import, traded close to $95 a barrel. High oil prices raise the risk of widening the trade deficit, which was nearly $65 billion in fiscal 2006/07, and that could weaken the rupee. "Intervention shook sentiment and started a scramble for dollars," a trader with a state-run bank said.
The Reserve Bank of India (RBI) bought a record $11.87 billion in intervention in September to check the rupee's rise to its highest levels in almost 10 years, and analysts said it played an active role in October and into November as well. Traders said a few banks bought dollars towards the end of trade on behalf of foreign funds.
Foreigners have bought more than $17 billion of stocks in 2007, well above the $10.7 billion record inflow for the whole of 2005. However, so far this month they have been net sellers of more than $100 million of shares.
Gold rises on marriage season demand
Gold rose by Rs 25 to Rs 10,215 per ten gram on the bullion market today on emergence of buying by retail customers for the ongoing marriage season.
The precious metal was also boosted by firming global trend as weak dollar and spiralling crude prices raised the demand for gold as a safe investment.
Silver followed suit and recorded fresh gains on better offtake by industrial users and coins manufacturers.
Marketmen said increased buying by jewellery fabricators and local parties to meet the ongoing marriage season demand and reports of firming trend in global markets mainly pushed up gold prices.
Global trend which normally set a price band in domestic market, placed the metal higher at 790.60 dollar an ounce against previous level of 789.90 dollar.
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Standard gold and ornaments attracted fresh buying support and gained Rs 25 each at Rs 10,215 and Rs 10,065 per 10 grams respectively. Sovereign followed suit and traded higher at Rs 8,525 from Rs 8,500 per piece of eight gram.Similarly fashion, silver ready shot up by Rs 70 at Rs 19,050 per kg while weekly-based delivery rose by Rs 110 at Rs 19,060 per kilo.
Silver coins also met with heavy demand from coin makers and traded higher by Rs 300 at Rs 24,900 for buying and Rs 25,000 for selling of 100 coins.
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