Thursday 12 February 2015

Rupee Weakens Against Dollar To 62.39

The Indian rupee weakened for a fourth consecutive session against the dollar on Thursday, tracking losses in the Asian currencies markets.


At 2.20pm, the home currency was trading at 62.39, down 0.2% from Wednesday’s close of 62.26. The local unit opened at 62.43 per dollar and touched a low of 62.47—a level last seen on 9 January.


“The market is set to trade in the 61.50-63 range in the short term owing to the dollar demand from importers and possible aftershocks of the Delhi election results,” said a foreign exchange trader on conditions of anonymity.


Dealers were cautious ahead of the Index of Industrial Production (IIP) and Consumer Price Index (CPI) data due later on Thursday. A Bloomberg poll expects CPI inflation will be 5.5% for January compared with 5% in December while factory output will grow by 1.8% in December compared with 3.8% in November.


Major Asian currencies were trading lower against the dollar. The South Korean won was down 1.2%, Indonesian rupiah 0.68%, Malaysian ringgit 0.58%, Thai baht 0.14%, Philippines peso 0.1%, China renminbi 0.05%. However, Japanese yen was up 0.88% and Singapore dollar was up 0.1%.


The benchmark S&P BSE Sensex rose 0.08%, or 23.42 points, to 28,510.55.


The yield on India’s 10-year benchmark bond was trading at 7.743% compared with its Wednesday’s close of 7.734%. Bond yields and prices move in opposite directions.


Since the beginning of this year, the rupee has gained 1%, while foreign institutional investors have bought $2.53 billion from the local equity market and $4.45 billion from the bond market.


The dollar index, which measures the US currency’s strength against major currencies, trading at 94.809, down 0.19% from the previous close of 94.985.


Source:livemint.com





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