Rupee marked a remarkable
recovery, strengthening to its highest level in more than two weeks on Tuesday,
June 05, 2012 following a rebound in most Asian equities coupled with a bounce
back in the euro against the US dollar overseas. The domestic currency opened
higher by 29 paise at Rs. 55.35 to a dollar, dipped to a low of 55.56 before
climbing back to a high of 55.28 so far during the day.
However, dollar purchases from
oil importing companies are expected to limit any sharp gains in the local
currency. In the spot currency market, the Indian unit was last seen trading at
55.51, up around 13 paise or 0.23% as compared to previous close at 55.64.
Investors looked to European policymakers and the wider G7 to take decisive action to address the worsening euro zone crisis. In a sign of heightened global alarm about strains in the 17-nation euro area, finance chiefs of the Group of Seven leading industrialized powers will hold emergency talks by phone later on Tuesday.
Investors looked to European policymakers and the wider G7 to take decisive action to address the worsening euro zone crisis. In a sign of heightened global alarm about strains in the 17-nation euro area, finance chiefs of the Group of Seven leading industrialized powers will hold emergency talks by phone later on Tuesday.
The euro extended gains to a
one-week high ahead of a conference call by the Group of Seven financial policy
makers. The euro rose to as high as $1.2541, its highest in a week, extending
its rebound from a two-year low of $1.2287 reached on Friday. It last stood at
$1.2519 versus the greenback.
Domestic key benchmark indices also edged higher in early trade on firm Asian stocks. Asian shares advanced Tuesday to take back a portion of heavy losses made in the previous session, as investors hoped that policy makers would step in to stem growing concerns over the global economy.
Domestic key benchmark indices also edged higher in early trade on firm Asian stocks. Asian shares advanced Tuesday to take back a portion of heavy losses made in the previous session, as investors hoped that policy makers would step in to stem growing concerns over the global economy.
Meanwhile, the barometer index,
BSE Sensex, regained psychological 16,000 mark on hopes Reserve Bank of India
(RBI) may cut interest rates in the monetary policy later this month to prop up
slowing economy.
Foreign institutional investors (FIIs) sold Indian
shares worth a net Rs 637.14 crore on Monday, 4 June 2012, as per provisional
figures from the stock exchange. At the time of writing, the BSE Sensex was up
109.14 points or 0.7% to 16,097 while the S&P CNX Nifty tips was up 38.60 points
or 0.8% to 4,886.75.
In the domestic currency futures market on the NSE, the front month '27 JUN 12' contract opened at 55.64 on Tuesday, June 05, 2012, higher than the spot market rupee. The contract hit an intraday high at 55.73 and registered a low at around 55.46 so far during the day. At the time of writing, the NSE June 2012 USD/INR contract was trading at around 55.66, lower by around 5 paise or 0.08% as compared to previous close at 55.71.
In the domestic currency futures market on the NSE, the front month '27 JUN 12' contract opened at 55.64 on Tuesday, June 05, 2012, higher than the spot market rupee. The contract hit an intraday high at 55.73 and registered a low at around 55.46 so far during the day. At the time of writing, the NSE June 2012 USD/INR contract was trading at around 55.66, lower by around 5 paise or 0.08% as compared to previous close at 55.71.
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