Rupee dips lower
30 July 2004
The rupee dipped low to 46.50 levels before it was rescued by the RBI and the state banks. Rupee has opened weak at 46.49/50. The positive sentiment of a bullish dollar is ruling the market and weighing on the rupee. The recent good US data has kept the dollar on a high road.
The month end demand for dollar by importers has also been steady and is adding pressure on our currency. With the global interest rates expected to look up routing FDI into India will become quite a task.
The global oil prices that have been soaring, have reached a 21-yr high mark on this Wednesday. Fear of further hikes is also yielding to the bullish dollar sentiment.
The rupee watchers will watch out for the US GDP data or any other economic data to be released to capitalise the dollar upsurge knowing that the RBI will be bringing the rupee back in the range, such happenings are ideal for day spot traders.
The Japanese yen is regaining its losses against the dollar and has retraced itself to 111.35 levels. The yen went weak after the significantly weaker industrial production (IP) report for the month of June. This has been attributed to poor retail sales in the US that have caused some concern for companies such as Sony and other electronic giants in Japan.
Euro opened at 1.2020 levels and then the dollar went to 1.1990 corrected to 1.2058 levels ranging in 1.2050 levels this was more due to some terrorism related news as nothing came on the economic front.
The pound at 1.854 levels retraced from 1.8100 levels shows weakening reflecting the fall in mortgage approvals and a miniscule rise in consumer confidence according to the Gfk report. There is no doubt that the Bank of England needs to act to prevent a slowing from becoming a bubble burst.