The rupee was trading marginally lower against the US dollar on consistent demand for the US currency from companies and state-owned banks.
At 2.50pm, the rupee was trading at 62.18 a dollar, down 0.06% from its previous close of 62.15 and down from its opening level of 62.11 per dollar.
“A couple of large companies and state-owned banks have been on the buying side today because there is a feeling in the market that 62 per dollar is a good level to buy at,” said a dealer with a private bank. India’s benchmark equity index, S&P BSE Sensex, was trading at 27,347.96 points, down 0.28%.
Wholesale price inflation (WPI) for December recorded a 0.10% rise from a year ago, up from an unchanged level in November and lower than expectations of a 0.40% rise which has increased expectations of a interest rate cut by the Reserve Bank of India (RBI).
The yield on India’s 10-year benchmark bond stood at 7.77% unchanged from Tuesday’s close. Bond yields and prices move in opposite directions.
Since the beginning of the 2015, the rupee has strengthen 1.38% against the dollar, second best performer in Asian currencies market after Japanese Yen, while foreign institutional investors have sold $352.5 million from local equity markets and bought $692.4 million from the debt market.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.05, down 0.28% from its previous close of 92.31.
Source:livemint.com
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