MUMBAI (Commodity Online): Rupee commenced stronger for the second day on Thursday, March 31, 2011 tracking a steady to lower dollar in early Asian trades. The US dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, is lower by around 0.06% at 76.07.

The domestic currency opened at Rs. 44.69 per dollar and edged up to 44.68 in initial trades following a positive start to the local shares and encouraging regional peers. Among Asian currencies, the Taiwan dollar was higher by 0.05% at 29.48, the Indonesian Rupiah 0.13% at 8708.75 while the South Korean won was up 0.25% at 1101.35 as against the US dollar.

Although foreign inflows witnessed in the last few days that normally rise towards the financial year end as companies close their accounts are expected to support the Indian currency, month end dollar demand from importers is likely to cap some of the gains.

The US dollar started relatively steady with a downward bias early in Asia on Thursday, reversed initial dip and gained to some extent before edging back lower against the euro. The release of the U.S. ADP employment report supported the view that the U.S. February payroll report due on Friday would be strong and this provided support for the dollar. The greenback was currently quoting slightly lower at 1.4142 versus the single European currency, supportive for the Asian peers.

The domestic indices surged to 2 -1/2-month highs at the onset of the trading session as data showing sustained buying by foreign funds boosted sentiments. As per provisional figures, foreign funds bought Indian shares worth Rs 739.61 crore on Wednesday. At the time of writing, the key benchmark BSE Sensex was higher by around 124 points at 19413.72 while S&P CNX Nifty was also up by around 35 points at 5822.40.

Some Asian markets edged higher on Thursday as a jobs report boosted optimism in the US economy. Telecommunications stocks led US stocks higher Wednesday, as optimism over deal activity added to confidence that jobs data would continue pointing toward a strengthening labor market. Trading in US index futures indicated that the Dow could fall 6 points at the opening bell on Thursday.

In the domestic currency futures market on the NSE, the forward month April USD/INR contract opened on Thursday at 44.84, higher than the spot market rupee. The contract hit an intra day high at 44.93 and registered a low at around 44.82 so far during the day.

At the time of writing, the NSE as well as MCX April 2011 USD/INR contract was trading at around 44.91 down 4 paise or 0.09% compared to previous close at 44.96. Rupee on the contract will likely find an intra day support at 44.83.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook