The Indian rupee commenced weaker on Thursday, July 18, 2013 despite
positive local shares as Federal Reserve Chairman Ben Bernanke's speech
was slightly more dovish than the market expected. The domestic currency
opened lower by 28 paise at Rs 59.63 to a dollar and edged up to a high
of 59.56 before dipping back to a low of 59.79 so far during the day.
In the spot currency market, the Indian unit was last seen trading at
59.77, down almost 42 paise or 0.71% as compared to previous close at
59.35.
Rupee posted slight falls on Wednesday as continued dollar demand from importers eroded early gains from the government's decision to relax foreign direct investment rules in various sectors. The currency's weakness, in spite of strong steps taken by the Reserve Bank of India late on Monday to support the currency, shows demand for dollars remains strong, overriding the central bank's attempt to stamp down on speculation. India relaxed foreign direct investment (FDI) rules on Tuesday in a broad swath of industries including telecoms, to prop up a sliding currency and increase confidence about the record high current account deficit.
Domestic key benchmark indices edged higher in early trade on mostly higher Asian stocks. Asian shares inched up to a near five-week high on Thursday after U.S. Federal Reserve Chairman Ben Bernanke pledged to keep monetary policy easy for the foreseeable future. India's barometer index, the BSE Sensex, moved above the psychological 20,000 mark. The CNX Nifty hit the psychological 6,000 mark. Foreign institutional investors (FIIs) sold shares worth a net Rs 26.09 crore on Wednesday, 17 July 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 101.28 points or 0.51% to 20,050.01 while the CNX Nifty was up 28.90 points or 0.48% to 6,002.20.
Meanwhile, the dollar held on to modest overnight gains early in Asia on Thursday after a choppy session that saw investors first sell then buy back the currency in reaction to Bernanke's comments. The euro holds above 1.31 to the dollar. The dollar index was below the 83 mark.
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Rupee posted slight falls on Wednesday as continued dollar demand from importers eroded early gains from the government's decision to relax foreign direct investment rules in various sectors. The currency's weakness, in spite of strong steps taken by the Reserve Bank of India late on Monday to support the currency, shows demand for dollars remains strong, overriding the central bank's attempt to stamp down on speculation. India relaxed foreign direct investment (FDI) rules on Tuesday in a broad swath of industries including telecoms, to prop up a sliding currency and increase confidence about the record high current account deficit.
Domestic key benchmark indices edged higher in early trade on mostly higher Asian stocks. Asian shares inched up to a near five-week high on Thursday after U.S. Federal Reserve Chairman Ben Bernanke pledged to keep monetary policy easy for the foreseeable future. India's barometer index, the BSE Sensex, moved above the psychological 20,000 mark. The CNX Nifty hit the psychological 6,000 mark. Foreign institutional investors (FIIs) sold shares worth a net Rs 26.09 crore on Wednesday, 17 July 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 101.28 points or 0.51% to 20,050.01 while the CNX Nifty was up 28.90 points or 0.48% to 6,002.20.
Meanwhile, the dollar held on to modest overnight gains early in Asia on Thursday after a choppy session that saw investors first sell then buy back the currency in reaction to Bernanke's comments. The euro holds above 1.31 to the dollar. The dollar index was below the 83 mark.
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