Rupee gets a breather
26 July 2004
The rupee opened at 46.30 levels not much lower than
its one year lowest but was soon bailed out slightly
to 46.27 visa-vis the dollar.
Some large state bank's dollar sales helped the rupee slightly and eased it to 46.27 levels this morning, but this might be a temporary feature with GTB being under RBI moratorium and a already low inflow of foreign funds might continue the down sentiment. Traders might just watch the market and wait for RBI support for the rupee.
The Japanese data bucks up the yen against the dollar and the Euro specially, after the poor US data and also not much better data coming forth from Europe. The dollar gave in some gains made against the Euro in anticipation of interest rate hikes by the Federal Reserve hinted by their chairman. The dollar lost some steam despite Greenspan's earlier positive statement about the US economy. Further US economic indicators to be released this weak will determine the dollar's fate.