The Indian rupee advanced in early trades on Wednesday, January 29, 2014 as emerging market currencies rebounded and as RBI hinted that r...
The Indian rupee advanced in early trades on Wednesday, January 29, 2014 as emerging market currencies rebounded and as RBI hinted that rate hikes could be ending. The domestic currency opened higher by 23 paise at Rs 62.28 against the US dollar and climbed to a high 62.12 before dipping back to a low of 62.30 so far during the day. In the spot currency market, the Indian unit was last seen trading at 62.18, stronger by 33 paise or 0.52% as compared to its previous closing at 62.51.
Rupee posted its biggest single-day gain in over two months on Tuesday, snapping a three-day falling streak after the central bank unexpectedly raised interest rates to bring down consumer inflation. Investors were also comforted after the Reserve Bank of India (RBI) indicated it did not foresee more near-term policy tightening should retail inflation ease in line with the central bank`s projections.
Rupee posted its biggest single-day gain in over two months on Tuesday, snapping a three-day falling streak after the central bank unexpectedly raised interest rates to bring down consumer inflation. Investors were also comforted after the Reserve Bank of India (RBI) indicated it did not foresee more near-term policy tightening should retail inflation ease in line with the central bank`s projections.
Domestic benchmark indices edged higher in early trade on positive Asian stocks. Asian markets rallied on Wednesday after Turkey stunned investors with a huge hike in interest rates, stirring hopes the drastic action would short-circuit a vicious cycle of selling in emerging markets and revive risk appetite generally.
Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 1267.35 crore on Tuesday, 28 January 2014, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 91 points or 0.44% to 20,774.51 while the CNX Nifty was up 30.10 points or 0.49% to 6,156.35.
In the global currency market, the dollar and euro also firmed on the Japanese currency as investors quickly unwound recent safe-haven flows. Japan`s yen extended its pullback early on Wednesday, while higher-risk currencies such as the Australian dollar rallied after Turkey stunned markets with a massive interest rate hike in an effort to stem capital flight from its economy.
Source : Capital Market
