MARKET HEADLINES
Rupee gains 17 paise against dollar in early trade
The rupee strengthened by 17 paise to 61.45 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows. Forex dealers said besides increased selling of the American currency by exporters and banks, the dollar's weakness against other currencies overseas, supported the rupee. A higher opening in the domestic equity market, which soared to new highs, too influenced the rupee, they added. The rupee had dropped by 21 paise to three- and-a-half week low of 61.62 against the Greenback in the previous session on sustained dollar demand from importers. Meanwhile, the benchmark BSE Sensex spurted by 159.33 points, or 0.57 per cent, to hit another record-high of 28,027.96 points in opening trade today.
Dollar retreats from 4 and a half-year high after US jobs data
The dollar slipped on Friday after a solid but below-expectation October US jobs report as investors took some profits on the greenback's months-long rally that has seen it reach multi-year highs in anticipation of tighter US monetary policy next year. Jobs growth in the United States increased at a fairly brisk pace last month, adding 214,000 non-farm jobs, which was under economists' forecasts for 231,000 new jobs. The unemployment rate dropped to 5.8 percent, a fresh six-year low. "The reaction to the data is an indication that the market is running tired of the dollar up move. The market is quite long of dollars and needs perfection to move higher. This data, if we had seen this three months ago, would have the dollar rallying. This is a solid report," said Greg Anderson, global head of FX strategy for BMO Capital Markets in New York. A tightening monetary policy environment in the United States would put the dollar at a yield advantage against its counterparts as investors hunt for better returns. Currency markets gyrated after the report, with the euro slipping briefly to a fresh 26- month low at $1.2357 before rebounding to a gain of 0.22 per cent on the day at $1.2400. For the week, however, the euro is down 1 per cent, according to data. "The main takeaway (of the US jobs data) is that despite weak growth abroad and some turbulence at home, we are still creating jobs at a healthy rate, and the underlying conditions continue to improve," said Brad McMillan, chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts. The euro is plumbing these lows following Thursday's renewed pledge by European Central Bank President Mario Draghi to take the steps necessary to support the struggling euro zone economy.
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