Rupee falls against US Dollar as importers buy dollars heavily - ZENMoney

The Indian Government Bond closed in red on the back of rising oil prices along with profit booking ahead of economic data next week. The fall was limited by central bank'sOMOannouncement this week and the government's plan to raise debt limits by another $5 billion.

Rupee fell against US dollar on the back of heavy dollar buying by importers, particularly in the oil sector, along with weakness in the euro. However, the slender gains on local equities on the back of positive macro-economic data limited the fall in the Rupee.

Euro trading on a flat note against US Dollar after the Euro zone business activity data indicated that an economic recovery was still some way off and kept alive chances of more interest rate cuts by the ECB. The US dollar held losses versus the euro after a Federal Reserve report said that the economy expanded at a "modest to moderate" pace since mid-April while hiring remained relatively subdued.

Yen rose against the US Dollar as a rout in Japanese stocks forced investors out of popular carry trades and as Japanese Prime Minister Shinzo Abe's announcement of his new growth policies fell short of market expectations. Yen further supported with fresh concerns that the US Federal Reserve might pare back its stimulus programme and that this could prompt funds to leave the Asian region.

Source : Equity Bulls

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