The rupee recovered marginally by two paise to 61.53 against the US dollar in early trade today at the Interbank Foreign Exchange on increased selling of the American currency by exporters and banks. Besides, the dollar's weakness against other currencies overseas and a higher opening in the domestic equity market supported the rupee, forex dealers said. Yesterday, the rupee ended lower by five paise at 61.55 against the dollar due to fresh demand for the US currency from banks and importers. Meanwhile, the benchmark BSE Sensex jumped 141.72 points, or 0.50 per cent, to hit lifetime high of 28,051.78 in opening trade today.
US Dollar steady, Australian dollar falls after RBA's intervention warning
The dollar took time out from its rally against the yen and euro on Thursday as traders awaited Chinese and US data for fresh catalysts, while the Australian dollar slid after a central bank official said an intervention on the currency has not been ruled out. The British pound languished at 14-month lows versus its US peer after dovish messages from the Bank of England. The dollar was little
changed at 115.56 yen after its advance to a seven-year peak of 116.11 was checked the previous day. The yen stabilised somewhat after Japan's top government spokesman Yoshihide Suga cooled speculation that Prime Minister Shinzo Abe will hold a snap election in December. The election talk had raised hopes that Abe will use a victory to implement a second round of reflationary policies and possibly delay a planned sales tax hike, sending Tokyo's Nikkei share average to seven-year highs and weighing on the yen in turn. The Nikkei was up a modest 0.2 per cent after its rally earlier in the week faded. "The yen is following the Nikkei closely and Suga's comments are making their impact felt. As another a measure of risk sentiment, upcoming Chinese data and their effect on equity markets will be in focus," said Shinichiro Kadota, chief Japan FX strategist at Barclays in Tokyo. Chinese retail sales and industrial output figures will be released at 0530 GMT. The Australian dollar, sensitive to the economic fortunes of China, was down 0.3 per cent at $0.8695 after Reserve Bank of
Australia Assistant Governor Christopher Kent said an intervention on the currency has not been ruled out. The Aussie has fallen 2.5 per cent against the dollar so far this year but the RBA had repeatedly said the currency was overvalued. Other economic indicators that could influence currency markets include U.S jobless claims later in the session and US retail sales data on Friday. The numbers may reinforce the brightening US economic prospects vis a vis Europe and Japan, a key factor that has helped the dollar charge higher against the euro and yen.
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