MARKET HEADLINES
Rupee trims initial gains vs dollar, still up by 2 paise
In line with equity market, the Indian rupee trimmed its initial
gains against the American currency but was quoted still higher by two
paise to 61.44 per dollar on mild selling of dollars by banks and
exporters on the back of weakness of dollar overseas.
The rupee resumed higher at 61.35 per dollar as against the last
weekend’s level of 61.46 per dollar at the Interbank Foreign Exchange (
Forex) Market and hovered in a range of 61.39 per dollar and 61.50 per
dollar before quoting at 61.44 per dollar at 1045hrs.
In New York, the US dollar struggled for direction last Friday,
attempting to rebound from a nearly two-year low versus the euro, as
end-of-week position-squaring competed with lacklustre economic data,
including a steeper-than- expected fall in consumer sentiment.
Dollar near 2-year low against euro, shares cling to weekly gains
The dollar was slumped near a two-year low against the euro on Friday
as clear expectations of continued US bond purchase left it facing its
sixth weekly fall in seven and world shares close to five-year highs.
Soft US jobs data this week has bolstered the view that the Federal
Reserve will not tamper with its huge bond-buying programme until well
into next year, triggering a drop in the dollar and lifting both shares
and bonds.
The broad weakness of the dollar remained the dominant theme for
markets and a dip in Germany’s Ifo business index and euro zone lending
data failed to dull the euro as it hovered at $1.3820 after hitting
$1.3833 overnight.
The region’s broad FTSEurofirst 300 index was down 0.3 per cent by
0840 GMT. That left a third straight weekly rise in the balance, though
shares remained near five-year highs.
Sterling has also enjoyed a strong run against the dollar in recent
months and it edged up after the UK GDP reading with buyers encouraged
by its economic recovery.
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