Ruppe hits a new low against dollar at Rs. 56.76

The Indian Rupee opened weaker amidst caution following RBI Governor Subbarao's comments yesterday wherein he attributed the weakness in the Rupee to India's persistent current account deficit. The Rupee weakened further intraday tracking the decline in the Euro. Losses in domestic equities also weighed on the Rupee, which intraday hit an 11-month high of 56.76. The Rupee pared losses in later trade amidst reported Dollar sales by PSU banks. The Rupee ended the day at 56.50, compared to yesterday's close of 56.38.

The 6 and 12-month forward premia closed at 6.13% and 5.99% respectively as against 6.18% and 6.02% yesterday.

The Yen strengthened against most of its major peers on the back of its safe-haven appeal amidst downbeat global risk sentiment. Meanwhile, upbeat Japanese industrial production data print has also aided the outlook on Japanese economy, thereby further aiding inflows. The Euro weakened against the US Dollar as German retail sales unexpectedly fell for the third month in April. Meanwhile, the British Pound pared intraday losses against the Dollar after BoE official Posen downplayed the prospects of incoming Governor Carney adopting a "radical" program to weaken the Pound. The Dollar index is trading slightly higher at 83.26 as against yesterday's close of 83.04. EUR/USD is trading lower around 1.2991, vs. 1.3050 yesterday; GBP/USD is trading down at 1.5212 vs. 1.5232 yesterday. USD/JPY is trading down at 100.51 vs. 100.73 yesterday. (17:00 IST)

Source : Equity Bulls

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