Rupee climbs 20 paise to 47.52 against Dollar
Written by admin on Thursday, August 6th, 2009 in Forex trading India.
Forex trading India-Rupee climbs 20 paise to 47.52 against Dollar
India Thursday 6 August 2009
MUMBAI: The rupee rose 20 paise to 47.52 against the dollar on Wednesday, with the upswing in local shares and a weak dollar boosting sentiment for the local unit. The rupee continues to trade near its two months high, last seen in June 2009.
Both the currency and government bonds markets are expected to be subdued for the remaining days of the week with public sector bank officials going on a strike. The central bank will buy bonds worth Rs 6,000 crore from traders on Thursday and sell double the amount of bonds (in an auction) on Friday.
Both the dollar and yen have been falling against most major currencies, ever since data showed the US gross domestic product contracted at a less-than-projected 1% annual rate after shrinking 6.4% in the prior three months.
This raised hopes of quicker global economy recovery, leading many traders towards non-dollar riskier assets.
US companies cut fewer jobs in July, as the recession eased as per a private report based on payroll data by ADP Employer Services.
Global traders are now waiting for the Labor Department’s payrolls report for further clues about the global economy. The Labor Department’s data on initial jobless claims for last week are due on Thursday and its July payroll report will come the following day.
Government bond prices fell on Tuesday and the 10-year benchmark bond yield rose 9 basis points to 7.09% mark, as some banks sold securities in view of the bankers’ strike starting on Thursday. Dealers also said there are not many expectations from Thursday’s buyback of bonds. Cut-off yields announced by RBI for 91-day Treasury Bills have risen 25 bps over the past week.