Rupee pares early losses, trades at 61.54 in morning deal
The rupee trimmed its early losses against the US dollar, but was still quoting down by four paise to 61.54 in the late morning trade on bouts of dollar demand from banks and importers. The rupee resumed lower at 61.56 per dollar as against the yesterday's closing level of 61.50 at the Interbank Foreign Exchange (Forex) Market. Later it slid further to 61.60 before bouts of dollar selling helped recoup some of its losses. It was quoting at 61.54 at 1025 hours. The rupee hovered in a range of 61.60-61.53 per dollar in morning deals. Sustained capital inflows into equity is helping the rupee to some extent, dealers said. In the New York market, the US dollar was steady against its major rivals in early trade after recouping some of its post-payrolls losses as an uptick in risk appetite sent US Treasury yields higher and underpinned Wall Street stocks. The greenback kept to a narrow range with the US bond market - a key driver of the currency - closed on Tuesday for the Veterans Day holiday. Meanwhile, the benchmark Sensex was trading higher by 99.43 pts, or 0.36 per cent, to 27,974.16 at 1040 hrs.
Sterling firm; UK wage data, BoE inflation forecasts key
Sterling climbed on Monday, holding above a 14-month low hit against the dollar at the end of last week, with British wage data and a quarterly report on inflation from the Bank of England on investors' radar. If Wednesday's wage data shows subdued growth, that would boost market expectations that the first rate hike from the BoE is not likely until the second half of 2015, keeping sterling under pressure. The same day's Inflation Report could provide mixed signals. A downward revision to near-term inflation forecasts on lower energy and food prices is likely to accompanied by upward revisions to longer-term forecasts. Economic growth forecasts might be tweaked lower to factor in renewed uncertainty from the euro zone, which is facing a slowdown and the threat of deflation, analysts said. Sterling was up 0.1 per cent at $1.5886, having hit a low of $1.5791 after U.S. jobs data on Friday, its weakest since September 2013. The dollar was weaker, with investors taking profits on bullish bets after the jobs report. The U.S. jobless rate fell to a six-year low of 5.8 per cent, pointing to an economic resilience in the face of slowing global growth that should see U.S.interest rates rise some time next year. "The BoE's views on weak price pressures have strengthened over recent months and, when you consider that alongside signals of UK economic momentum slowing, Governor (Mark) Carney might announce that a potential rate rise will be delayed to after spring 2015," said Jameel Ahmad, chief market analyst at FXTM. "If sterling/dollar does move to the upside before then, it will be due to further profit-taking on the dollar."
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