The Indian rupee commenced marginally higher on Tuesday, July 02, 2013
with inflows likely related to Unilever's open offer for Hindustan
Unilever, according to market sources, although the gains were short
lived. The domestic currency opened up by almost 8 paise at Rs 59.4425
to a dollar and climbed to a high of 59.18 before dipping back to a low
of 59.4650 so far during the day. In the spot currency market, the
Indian unit was last seen trading at 59.4525, higher by around 7 paise
or 0.11% as compared to previous close at 59.52.
Rupee came off near
two-week highs to close lower on Monday, ending a two-day winning
streak, as corporate inflows and a strong domestic stock market was
outweighed by a late surge in dollar demand from oil importers. Still,
the rupee has recovered substantially from a record low of 60.76 hit on
June 26 as a revival of global risk appetite and rumored inflows related
to Unilever's open offer for its Indian unit kept the rupee bid.
Investors are also hoping the government would soon announce additional
economic reforms centering on opening up more sectors for foreign
investments after last week approving a hike in domestic gas prices.
Domestic
equities edged lower amid initial volatility as most Asian stocks were
in red. Asian stocks were mostly lower on Tuesday, 2 July 2013, as
anemic manufacturing data from China raised growth fears. However,
Tokyo's Nikkei was seen extending gains after encouraging manufacturing
data in Europe and the United States helped cheer a market fretting
about a slowing Chinese economy.
The U.S. dollar and yen were
both on the back foot as a swathe of global industry data suggested an
improvement in growth without being strong enough to risk any reduction
in monetary stimulus from the Federal Reserve. The euro was flat above
1.30 to the dollar. The dollar index was just above the 83 mark.
Meanwhile, yen remained weak against the dollar. Asian currencies
trading mixed.
Source by Commodity Insights
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