Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Rupee to dollar: Indian currency edges down; custodians sell

Jul 02 2014, 09:34 IST
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SummaryIndian rupee marginally lower at 60.03/04 against the US dollar...

Indian rupee marginally lower at 60.03/04 against the US dollar versus its Wednesday close of 60.07/08, as custodian banks sell dollars.

Foreign institutional flows continue to hurt the pair. Overseas investors bought Indian shares worth $142.8 million on Tuesday, provisional exchange data shows. Shares trading up 0.65 percent.

Indian rupee is seen trading in a range of 59.90 to 60.10 against US dollar during the session, dealers say.

Most Asian currencies trading stronger against the dollar. See for a snapshot.

Traders expect the central bank to step up dollar purchases should foreign fund inflows continue through the day.

The central bank bought a net $14.51 billion in the forward market in May compared with net forward dollar sales of $6.09 billion in April, according to calculations based on data available on the RBI's website.

Pre-open: Indian rupee is expected to fall from its previous close of 60.07/08 against Us Dollar, on continued foreign institutional investment flows.

Overseas investors bought Indian shares worth 8.56 billion rupees ($142.8 million) on Tuesday, provisional exchange data shows.

The pair currently seen trading at 60.05/07 in the offshore spot non-deliverable forwards traded in Singapore. The pair is seen trading in a range of 59.75 to 60.30 during the session.

Most Asian currencies like won, Taiwan dollar trading stronger against the dollar. See for a snapshot.

The Australian dollar hovered near an eight-month peak early on Wednesday, having been swept higher by a short squeeze while an upbeat manufacturing survey helped power sterling to levels not seen in nearly six years.

Asian stocks scored a three-year peak after a round of upbeat global economic data whetted risk appetites and helped Wall Street taste all-time highs.

Traders continue to monitor suspected central bank intervention, progress on the monsoon and geopolitical tension in Iraq.

The central bank bought a net $14.51 billion in the forward market in May compared with net forward dollar sales of $6.09 billion in April, according to Reuters calculations based on data available on the RBI's website.

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