Indian Rupee steady near 1-week highs; stocks, dollar eyed on Monday 26 July 2010
Written by admin on July 26th, 2010 in Uncategorized.
India Monday 26 July 2010: The rupee was largely steady in early trade on Monday holding near recent 1-week highs tracking a seesawing local share market with traders watching the dollar’s moves versus majors for further direction.
At 9:15 am the partially convertible rupee was at 46.92/93 per dollar, little above its Friday’s close of 46.94/95, when it had risen as high as 46.8925, its strongest since July 16. So far the rupee has traded in a range of 46.90 to 46.9550. Markets opened down 0.2 percent but soon turned positive. The euro kept to a tight range in Asian trade, with some scepticism about the credibility of the euro zone’s stress tests on its banking sector keeping investors sidelined.
The index of the dollar against six major currencies was little changed and would be watched for cues, dealers said. The Reserve Bank of India is widely expected to raise key interest rates by 25 basis points on Tuesday.
Rate hikes could temporarily hurt the rupee if stocks fall, but in the long run would help the rupee gain due to the interest rate differential.