Indian rupee snaps 2-day rally as Fed impact fades



REUTERS

Published — Friday 12 July 2013

Last update 12 July 2013 2:14 am

| نسخة PDF Print News | A A

MUMBAI: The Indian rupee snapped a two-day rally to weaken slightly as importers including oil firms bought dollars, while the initially big impact from US Federal Reserve Chairman Ben Bernanke’s comments on US stimulus faded later in the session.
Bernanke said the Fed would continue to pursue an accommodative monetary policy as inflation remained low and the unemployment rate might be understating the weakness of the labor market.
Although the rupee hit its highest level in more than a week in the morning session on hopes that foreign investors would curb their recent strong sales in domestic markets, the euro’s fall from a session high, prompted covering of short-dollar positions in domestic markets.
Investors are awaiting industrial output and consumer price inflation data due after market hours for near-term direction.
“Bernanke’s statement seemed in favor of accommodation, but markets will look for more comments, data before being sure of the accommodative policy,” said Samir Lodha, managing director at QuantArt Market Solutions.
The partially convertible rupee closed marginally weaker at 59.6750/6850 per dollar compared to 59.66/67 on Wednesday.
The unit rose to as high as 59.32 in opening trade, its strongest since July 2.
The falls were led by dollar purchases from importers, although traders later spotted greenback sales at around 59.98 levels, largely from state-run banks which helped the rupee stay above the 60-per-dollar mark.
Some traders speculated the selling could be on behalf of the central bank, though that was not the universal view.
In the offshore non-deliverable forward PNDF, the one-month contract was at 60.08 while the three-month was at 60.76.
In the currency futures market INRFUTURES, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 59.88 with a total traded volume of $ 3.41 billion.

What's happening around Saudi Arabia

JEDDAH: Timely intervention by Deputy Crown Prince Mohammed bin Salman helped move a Saudi woman, who was declared “brain dead” in the US, to the Kingdom.Hani Matar El-Enzi was quoted as saying by an online publication on Wednesday that his wife, Bas...
RIYADH: The world’s fattest man from Jazan has shed 320 kg in almost three years and a video online showed him taking his first steps with the help of a Zimmer frame, thanks to the role of the Ministry of Health in the weight-loss program.Khaled Mohs...
JEDDAH: The National Society for Human Rights (NSHR) has questioned the fairness of Saudis being sentenced to death in Iraq.The organization believes the sentences have been issued against the backdrop of “sectarian pressures” and that the regional s...
RIYADH: The $22-billion Riyadh Metro project is going on according to the plan despite the fact that many global projects are faltering.“There are many stalled projects all over the world and not in the Kingdom alone, but the metro project in the Sau...
JEDDAH: Four members of the Commission for the Promotion of Virtue and the Prevention of Vice (Haia) were stabbed by a youth who was allegedly trying to blackmail a girl in Jeddah. The incident happened on Tuesday night and the four officers, who sus...
RIYADH: A recent report released by the Ministry of Labor revealed that the number of violations registered on the ministry’s electronic program “Together for Monitoring” in the months of December 2015 and January 2016 amounted to 484, of which 157 w...
RIYADH: Health Minister Khalid Al-Falih visited the medical complex in Thuwal, near Jeddah, on Tuesday. The facility was set up by Saudi Aramco, whose chairman is the health minister himself.According to the minister, the complex provides primary hea...
JEDDAH: A number of Shoura Council members have voiced objections to some imams who express their personal opinions during Friday sermons.The members asked the Ministry of Islamic Affairs to supervise the sermons to make sure they were written by spe...
MADINAH: Street vendors near the Prophet’s Mosque pose a risk to the country’s reputation and economy besides blocking the way of service cars, Red Crescent and Civil Defense vehicles, an expert has said.Ninety-eight percent of these street merchants...
RIYADH: Appropriate action has been taken against the Haia members who were involved in beating up a girl opposite the Nakheel shopping mall here recently, but the girl was also at fault, a Haia official has clarified.“A probe has revealed that the g...
I am from the east of France but moved to Saudi Arabia from Paris in 1990. I worked for a princess as a French language tutor. I was young and single. I thought it was very exotic and mysterious. I lived in a palace. I left Saudi Arabia in 1992 and c...
JEDDAH: The Pakistan Repatriation Council (PRC) held a symposium on Kashmir and the obligation of Muslim world toward Kashmiris.It was presided by Ali Al-Ghamdi, a former Saudi diplomat. Other guests and speakers at the event were Shahid Nayeem, pres...
DAMMAM: A total of 627 kidney transplant surgeries were performed in the Kingdom last year, bringing the number of kidney transplants, performed since the beginning of the organ donation program, to 9,000 surgeries, said Dr. Faisal Shaheen, director...
ABHA: Saudi women spend more on cosmetics compared to women in the West, the Arab world and even in the Gulf, economic studies show.Recent statistics issued by the Saudi Customs suggest the amount of imported cosmetics in the past year exceeded SR2.3...
RIYADH: A study is under way to provide health insurance to Umrah pilgrims and domestic workers and certain articles of the health regulations needs to be amended, an official has said.According to local media, the statement was made by Mohammed bin...

Stay Connected

Facebook