Rupee ends little changed; sentiment positive
The rupee ducked the fall in Asian currencies to end little-changed on Monday, as continued foreign fund flows offset nervousness about a weakening Chinese economy and the dollar's strength after the Bank of Japan's stimulus announcement.business Updated: Nov 03, 2014 19:10 IST
The rupee ducked the fall in Asian currencies to end little-changed on Monday, as continued foreign fund flows offset nervousness about a weakening Chinese economy and the dollar's strength after the Bank of Japan's stimulus announcement.
In recent sessions, falls in the rupee have been capped after continued strong foreign inflows helped send domestic shares to consecutive record highs and 10-year bond yields to more than 14-month highs.
Global factors, including the European Central Bank policy meeting on Thursday and the US monthly jobs data on Friday, will likely determine the rupee's direction. Adding to the caution in positions, local markets will be closed on Tuesday and Thursday for holidays.
"India is one of the biggest beneficiaries of the yen carry-trade," said Anindya Banerjee, a currency analyst at Kotak Securities.
"On the day when the yen fell the most, it is obvious that the rupee will relatively be the better performer among Asian currencies."
The partially convertible rupee closed at 61.40/41 per dollar, almost the same as its Friday close of 61.3950/4050. Markets will be closed on Tuesday and Thursday for local holidays.
Domestic data showing a modest pickup in Indian factory activity in October, according to the HSBC Manufacturing Purchasing Managers' Index (PMI), failed to have much of an impact
In the offshore non-deliverable forwards, the one-month contract was at 61.59/69, while the three-month contract was at 62.19/29.
First Published: Nov 03, 2014 09:59 IST