Indian rupee seen opening weaker against the US dollar; RBI intervention watched

Jul 01 2014, 08:54 IST
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The Indian rupee fell on Monday, posting its first quarterly fall in three. (Reuters) The Indian rupee fell on Monday, posting its first quarterly fall in three. (Reuters)
SummaryIndian rupee is expected to fall from its previous close of 60.17/18 against the US dollar...

Indian rupee is expected to fall from its previous close of 60.17/18 against the US dollar, tracking gains in Asian currencies and stocks.

However, dealers say the rupee will continue to remain in a tight range on geopolitical tension in Iraq and suspected central bank intervention.

The pair currently seen trading at 60.07/09 in the offshore spot non-deliverable forwards traded in Singapore. The pair is seen remaining in a 59.90 to 60.50 range during the session.

The Indian rupee fell on Monday, posting its first quarterly fall in three as suspected intervention by the central bank continues to prevent the currency from gaining much above 60 to the dollar.

Most Asian currencies trading stronger against the US dollar.

The dollar languished at seven-week lows against a basket of major currencies on Tuesday, having extended a month-long decline after a recent batch of mixed data cast doubts on the strength of the U.S. economic recovery.

Traders will monitor the domestic share market for clues on the direction of foreign fund flows. The Nifty India stock futures traded in Singapore currently trading 0.36 percent higher.

Asian shares were off to a cautious start near a three-year high on Tuesday while the U.S. dollar was listless as investors took new bets that U.S. monetary policy will stay loose for some time.

India Morning Call-Global Markets

EQUITIES

NEW YORK - The S&P 500 and the Nasdaq Composite indexes wrapped up a sixth straight quarter of gains on Monday, a streak not seen in more than 14 years.

The three major U.S. stock indexes, however, closed little changed for the day, following a set of mixed economic data.

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LONDON - Britain's top equity index slipped lower on Monday, with budget airline easyJet the worst-performing stock as it felt the effect of a broker downgrade.

The blue-chip FTSE 100 index ended down by 0.2 percent, or 13.83 points, at 6,743.94 points - down more than 2 percent from its 2014 peak of 6,894.88 in May, which marked its highest level since December 1999.

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TOKYO - Japan's Nikkei share average rose on Tuesday as upbeat China factory reports offset some weak spots in the Bank of Japan tankan survey.

Big Japanese manufacturers' business sentiment worsened in the three months to June but is poised to improve in the following quarter, the central bank survey showed.

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