Dollar-Rupee jumps on India's slowing growth - IIFL

- Dollar/rupee opened down Monday on expectations Bank of Japan may ease monetary policy, which may lead to flows in to domestic market and after US industrial production rebounded to near one-year high

- There are good bids from oil importers at current levels. Demand from a large corporate for repayment of foreign loan is also putting pressure on the rupee

- Dollar/rupee jumped to day's high in afternoon trades Monday after the government slashed India's growth projections amid demand for the greenback from oil importers and for repayment of foreign currency convertible bonds

- Investors also remained uncertain on a deal to avert the looming fiscal US fiscal cliff issue

- Euro/dollar traded off seven-month high Monday on profit booking ahead of Italian Prime minister Mario Monti's resignation after the approval of the budget, adding to the destabilisation arising from the euro-zone's fiscal crisis

- Japan's Liberal Democratic Party (LDP) won the recent elections and investors hope the party will favour monetary easing by the Bank of Japan.

Source : Equity Bulls

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