Rupees Grows Up On Local Shares
On Thursday, rupee climbed little higher, led by increase in dollar inflow and local equities, as the market waited for output data by factory for signs on interest and growth rates.
Industrial output in February perhaps slowed down by reaching a point of 6.6 % from the month of January, while the increase in the industrial and consumer non-durables areas likely moderated, as per the report of Reuters.
The Reserve Bank of India is about to cut down the repo rate almost by 25 points in the next week to aid the fading growth, as expected by economists.
On Wednesday, at around 9:55 a.m. the rupee reached at 51.35/36 to dollar, which was stronger as compare to Wednesday’s 51.42/43.
A foreign currency trader from a private sector bank said that, the production number by industries will be closely watched for making a brunt on equities, outlook on inflows and rates. If the number of the factory output will improve, the equities pursued by rupee will also improve further.
However, as per some traders, a sharp rise in not expected in rupees.
From a foreign bank, a currency trader said that, last time we saw rebound in rupees, let’s watch if it can break last record of 51.25.
Due to the frail fundamental of third largest economy of Asia, the outlook of rupee is clouded, that also includes expanding balance of current account, high inflation and slowing growth.
The contract of non-deliverable offshore for one month was at 51.79.
In the future market of currency, the very much traded near-month rupee-dollar contracts at National stock Exchange, the United Stock Exchange and MCX-SX were at 51.53, on whole volume of $352 million.