×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Rupee rises on equities, euro

Rupee rises on equities, euro
Comment E-mail Print Share
First Published: Tue, Oct 25 2011. 10 34 AM IST

Updated: Tue, Oct 25 2011. 10 34 AM IST
Mumbai: The rupee gained on Tuesday, buoyed by positive domestic equities and a steady euro, with all eyes trained on the central bank’s interest rate decision at 11:00am.
At 10:28am, the partially convertible rupee was at 49.70/71 per dollar, 0.3% stronger than Monday’s close of 49.825/835.
“The macro report on Monday was less hawkish than expected by most people. There is, therefore, a view that the stance may be moving towards investment encouragement,” said Ananth Narayan G., head of fixed income, currencies and commodities at Standard Chartered Bank.
“All eyes are now on the policy statement.”
The federal bond yields dropped over 7 basis points after opening on Tuesday after the Reserve Bank of India’s report on Monday ignited hopes of a pause on rates, traders said.
After market hours on Monday, the RBI said that although inflation remains “sticky”, risks to growth have risen and weakening investment imperils growth for the next fiscal year.
The central bank is widely expected to raise its key lending rate by 25 basis points later in the day, according to a poll by Reuters last week.
The euro edged lower on Tuesday but still held near a six-week high hit the previous day, supported by market expectations for European leaders to come up with broad measures to contain the region’s debt crisis at a summit due on Wednesday.
The one-month onshore forward premium on the rupee was at 24.5 points from 25.25 on Monday, the three-month premium was at 63.5 points from 64.5 and the one-year premium was at 147.5 points, from 150.
The one-month offshore non-deliverable forward contracts were quoted at 49.97, weaker versus the spot rupee rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 49.7225. The total traded volume on the three exchanges was $1.44 billion.
Comment E-mail Print Share
First Published: Tue, Oct 25 2011. 10 34 AM IST
More Topics: Markets | Rupee | Currency | Asia | BSE |