Rupee extended loss and closed at 42.97 as banks continuously bought the greenback to meet demand from foreign institutional investors. There is mostly demand from foreign funds as local shares were seen weak. However, Indian unit could not breach the 43/$1 mark despite the strong demand as some state-run banks sold dollars around 42.97/$1for the Reserve Bank of India. The dollar was broadly stronger after comments from Fed Chairman Ben Bernanke fueled speculation that the central bank would raise interest rates sooner than most expected. The European single currency declined to a 5-day low of 1.5525 against the dollar and The Statistical office INSEE reported that French industrial output grew 1.4% month-on-month in April compared with a revised fall of 1% in March. The dollar rose to a more than three- month high against the yen on concerns of remarks that U.S. economy have diminished, prompting traders to increase bets on higher interest rates. The pound snapped a three-day gain against the dollar as an industry report showed a squeeze on mortgage lending kept U.K. house price declines close to the most widespread level in at least three decades. The Australian dollar fell the most in 11 weeks slid to near a four-month low after U.S. Treasury Secretary said he would ``never'' rule out currency intervention.
Tuesday, June 10, 2008
EVENING REPORT
Rupee extended loss and closed at 42.97 as banks continuously bought the greenback to meet demand from foreign institutional investors. There is mostly demand from foreign funds as local shares were seen weak. However, Indian unit could not breach the 43/$1 mark despite the strong demand as some state-run banks sold dollars around 42.97/$1for the Reserve Bank of India. The dollar was broadly stronger after comments from Fed Chairman Ben Bernanke fueled speculation that the central bank would raise interest rates sooner than most expected. The European single currency declined to a 5-day low of 1.5525 against the dollar and The Statistical office INSEE reported that French industrial output grew 1.4% month-on-month in April compared with a revised fall of 1% in March. The dollar rose to a more than three- month high against the yen on concerns of remarks that U.S. economy have diminished, prompting traders to increase bets on higher interest rates. The pound snapped a three-day gain against the dollar as an industry report showed a squeeze on mortgage lending kept U.K. house price declines close to the most widespread level in at least three decades. The Australian dollar fell the most in 11 weeks slid to near a four-month low after U.S. Treasury Secretary said he would ``never'' rule out currency intervention.
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