MARKET HEADLINES
Rupee down 13 paise against dollar in early trade
The rupee fell by 13 paise to 61.54 against the dollar in early trade today at the Interbank Foreign Exchange due to increased demand for the US currency from importers.Forex dealers attributed the rupee's weakness to increased demand for the US currency from importers but a higher opening in the domestic equity market, limited the fall. Besides, the dollar's strength against other currencies overseas put pressure on the rupee, they said. The rupee had ended almost flat at 61.41 against the Greenback in the previous session on Wednesday on alternate bouts of buying and selling. Forex market remained closed yesterday on account of "Guru Nanak Jayanti".Meanwhile, the benchmark BSE Sensex rose by 55.03 points, or 0.20 per cent, to 27,970.91 in early trade today.
Sterling at 5-week high vs euro as ECB keeps easing options open
Sterling rose to a five-week high against the euro on Thursday after European Central Bank chief Mario Draghi affirmed the bank's balance sheet will be expanded to 2012 levels and emphasised ECB policymakers were unanimous in backing further easing measures. After a Reuters report that some national central bankers in the euro area would challenge Draghi over what they saw as his secretive management style and erratic communication, there was talk that he might be losing support for more measures like sovereign bond purchases. But his latest comments suggest the ECB's governing council is committed to further easing measures, including using additional unconventional measures, if needed.
On a day when the Bank of England kept interest rates unchanged at a record low of 0.5 percent, Draghi's dovish message led to a drop in the euro across the board. It hit a five-week low of 77.99 British pence and dropped to $1.2393 against the dollar, its lowest in more than two years. "Draghi likely alleviated concerns that he may struggle to successfully lead the governing council to implement more aggressive measures," said Valentin Marinov, currency analyst at Citi. Earlier, the BoE concluded a two-day meeting and kept rates unchanged, as expected. But attention is turning to economic projections the Bank is due to publish on Nov. 12 in its quarterly Inflation Report. Those
projections are likely to reflect concern that has grown over Britain's fast- recovering economy since the BoE's last quarterly forecasts, in August. The BoE is likely to be cautious given growing doubts over the euro zone recovery. The euro zone is Britain's biggest trading partner, and slowing growth there could hurt exports and prompt the BoE to keep interest rates lower for longer.
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