Rupee to rise to 1-week high on broad $ drop
The rupee should strengthen to fresh one-week highs on Wednesday, taking cues from the dollar's drop against major currencies.
January 12, 2011 / 11:35 IST
The rupee should strengthen to fresh one-week highs on Wednesday, taking cues from the dollar's drop against major currencies.
At 0255 GMT, the index of the dollar against six major currencies was down 0.3% at 80.638 points.However, the euro struggled to advance against the greenback in early Asia trade after posting two straight days of gains, with little upside potential seen in the short term as caution set in ahead of debt sales from highly indebted eurozone members. Traders expect the rupee to open around 45 per dollar and move in 44.85-45.15 band. It had closed at 45.1625/1725 on Tuesday, after hitting 45.16, its strongest since January 5 and 0.6% above its 45.45/46 close on Monday.The MSCI index of Asian shares ex-Japan was trading 0.6% higher, while the Nifty India stock futures traded in Singapore were up 0.2%, suggesting a firm start in the local market.Traders would also watch November factory output data due around 11 am (0530 GMT) for clues on the likely central bank action at the upcoming January 25 policy review.Industrial output growth in November probably slowed to 6.6% from a year earlier, a median forecast in a Reuters poll showed. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
