Rupee held in tight band; Bernanke speech eyed

Rupee held in tight band; Bernanke speech eyed

Mumbai: The Indian rupee moved in a tight range on Friday afternoon with mild losses in shares and the dollar overseas providing little direction ahead of the Federal Reserve chairman’s speech on the US economy.

Ben Bernanke is scheduled to speak at an annual meeting of the world’s central bankers in the US state of Wyoming at 7:30pm, with market players looking for any clues on his plan to boost measures to support the economy.

At 2:00pm, the partially convertible rupee was at Rs46.86/87 per dollar, marginally below Rs46.84/85 at close on Thursday. It has moved in range of Rs46.8150 to Rs46.89 so far.

The dollar rose against the yen on Friday, trimming earlier losses due to wariness on possible measures from Japanese authorities to stem the yen’s rise.

The index of the dollar against six majors was marginally lower. Dealers expect the rupee to hold in a range of Rs46.80-46.90 unless the local sharemarket falls sharply.

Shares were down about 0.3% with outsourcers leading the decline, taking cues from weak regional markets.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs46.8625, with the total traded volume on the two exchanges at about $3.5 billion.