Rupee opens lower at 61.23 per dollar; trade data eyed

The rupee falls despite the dollar trading near a six-week low 

 

Wed, Dec 11 2013

 

The yield on India’s 10-year benchmark bond was trading at 8.836%, compared with its Tuesday’s close of 8.84%. Photo: Pradeep Gaur/Mint

Mumbai: The Indian rupee on Wednesday opened lower at 61.23 per dollar against its Tuesday’s close of 61.04.

The Indian currency lost ground despite the dollar trading near a six-week low against a basket of currencies on Wednesday, hampered by a growing view that the Federal Reserve needs more positive economic data before it decides to start reducing its monetary stimulus.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.024, up 0.07% compared with its previous close of 79.966.

“The recent rupee upmove appears to be overdone. Let us come back to basics and fundamentals,” the chief of dealing at a private bank said.

The yield on India’s 10-year benchmark bond was trading at 8.836%, compared with its Tuesday’s close of 8.84%.

At 9.05am, the Indian currency was trading at 61.31 per dollar, down 0.44%. India’s equity benchmark BSE Sensex was trading at 21,191.27 points, down 0.3%.

Bloomberg reported on Tuesday that the government will release trade data for November on Wednesday at 11am. 

 

ABHISHEK KUMAR

PGDM 1ST YR