Indian Rupee Pares Early Gains

The Indian rupee commenced higher on Friday, June 14, 2013 after having depreciated for most part of the week, witnessing its life time low levels. The domestic unit had hit a record low of 58.98 on Tuesday before a moderate central bank intervention and comments by government officials helped the unit gain some ground. The domestic currency opened at Rs 57.78 to a dollar and hit an intraday high of 57.63 before plunging back to a low of 57.86 so far during the day. In the spot currency market, the Indian unit was last seen trading at 57.83, higher by around 16 paise or 0.28% as compared to previous close at 57.99.
Rupee recovered a large part of its losses on Thursday, helped by dollar sales from a corporate and exporters, but disappointment over lack of any specific measures from the government prevented a further rise.
The U.S. dollar remained in the doldrums in early Asian trade on Friday, having slumped to a fresh four-month low against a basket of currencies as a bounce-back in global equities saw investors favour the euro and commodity currencies.
Key benchmark indices edged higher in early trade as firm Asian stocks boosted sentiment. Asian shares recovered from multi-month lows on Friday, as a rebound in U.S. equities on the back of upbeat economic data calmed nerves after a bruising selloff in global markets, but investors remained cautious ahead of next week's Federal Reserve policy meeting. At the time of writing, the S&P BSE Sensex was up 184.67 points or 0.98% to 19,011.83 while the CNX Nifty was up 57.50 points or 1.01% to 5,756.60
On macro front, the Central Statistics Office (CSO) will unveil wholesale price index (WPI) data for May 2013 today, 14 June 2013. Inflation based on the wholesale price index (WPI) is seen easing further to 4.8% in May 2013, according to a poll of economist carried out by Capital Market. The WPI eased sharply to 4.89% in April 2013, from 5.96% in March 2013. Meanwhile, WPI inflation for February 2013 was revised upwards to 7.28% from 6.84% reported earlier.
Source by Commodity Insights