The Indian rupee opened higher on Monday, January 13, 2014 as the US dollar nursed broad losses early this morning after surprisingly sof...
The Indian rupee opened higher on Monday, January 13, 2014 as the US dollar nursed broad losses early this morning after surprisingly soft employment data raised doubts about how quickly the Federal Reserve can scale back stimulus. The domestic currency commenced stronger by 36 paise at Rs 61.55 against the US dollar and inched up to a high of 61.54 before slipping back to a low of 61.63 so far during the day. In the spot currency market, the Indian unit was last seen trading at 61.58, up around 33 paise or 0.53% as compared to previous close at 61.91.
Rupee strengthened to its highest against the dollar in more than a week on Friday on bets that data will show an improving economy and faltering inflation, boosting confidence in the country`s outlook. On Friday, data released by the government showed that the index of industrial production (IIP) contracted 2.1% in November, mostly due to a 21.5% dip in output of consumer durables despite the festive season.
Local benchmark indices surged in early trade as a weaker-than-estimated US jobs report eased concern that the Federal Reserve may accelerate the pace of stimulus cuts. Fed`s bond-buying program has been a source of liquidity for most Asian and emerging markets in recent years. The barometer index, the S&P BSE Sensex, moved past the psychological 21,000 mark. Asian shares and currencies were also mostly firmer on Monday in the wake of surprisingly weak U.S. jobs numbers that revived speculation the Federal Reserve could keep policy loose for longer.
Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 68.16 crore on Friday, 10 January 2014, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 244.44 points or 1.18% to 21,002.93 while the CNX Nifty was up 66.25 points or 1.07% to 6,237.70.
In the global currency market, the U.S. dollar nursed broad losses early on Monday after weak employment data raised doubts about how quickly the Federal Reserve can scale back stimulus.
Source : Capital Market
