Rupee Gains 7 Paise Opposite to U.S. Dollars
The Indian rupee appreciated by 7 pais of RS 44.92 per U.S. dollar in opening trade on the Interbank Foreign Exchange Wednesday, backed by U.S. dollar is weakening against the euro and other Asian currencies and a higher opening in the stock market.
By 1:27 it was partially convertible rupee at 44.88/89 45.00/01 versus the end.
The index of the dollar against six major currencies fell by 0.2% at 74,897 points at 0250 GMT, and 75,379 when the local forex market closed on Mondays.
The euro extended gains in early Asian trade, after comments from the chairman of euro zone bailout fund, the plant protects raised triggered short covering, but advance stalls in front of a confidence vote on the government in the Greek parliament.
The local currency has moved to 44.8850 44.9650 series so far today and is expected to be in the band 44.85 to 45.00 in the rest of the trade.
Forex dealers said U.S. dollar weakened against the euro and other Asian currencies abroad and a better start in the stock market held on rupee sentiment against the U.S. dollar today.
The euro was at $ 1.4367 and the index of the dollar against six major currencies fell by 0.35 percent at 74,767 points.
Traders expect rupee to open around 44.95 to the dollar and move in a 44.90 to 45.10 band, with the possibility of slipping to 45.25 If the shares remain weak through the day.
Meanwhile, Bombay Stock Exchange SENSEX up 119.14 points or 0.68 percent to 17,625.77 in opening trade today.
Indian shares rose 1 percent Tuesday to demand compensation from yesterday’s losses on real Asian markets, but trade was restless as inflation concerns and a slowdown in economic growth kept investors wary.
MSCI index of Asian equities ex-Japan rose 0.4%, while Nifty futures traded in Singapore fell by 0.1%, indicating a flat to lower start on the local market.
