Rupee builds on to its previous session gains; GDP data eyed

31 May 2011 Evaluate

Indian Rupee building onto its previous session gains has emerged stronger on Tuesday tracking gains in other Asian currencies and regional equities. Strength of dollar and a weak dollar against basket of major currencies has mainly buoyed the sentiment for the local currency. However, movement of the Indian currency will be eyed as GDP data due to released in noon will set the tone of trade on Dalal Street. The street expectation is that the economy annual growth for quarter should remain unchanged from the previous quarter at 8.2%.

On the global front, the euro stroke a three-week high against the dollar on Tuesday after a wave of short-covering triggered by a report saying Germany could make concessions on efforts to put together a bailout for Greece. Meanwhile, the dollar has come under selling pressure with many traders anticipating that the important numbers this week, such as ISM manufacturing and payroll data, could cement the view that the U.S. recovery may remain slow for now.

The partially convertible Rupee is currently trading at 44.98/99, stronger by 10 paise from its previous close of 45.08 on Monday. It has touched a high and low of 44.99 and 44.97 respectively. The Reserve Bank of India's reference rate for the US dollar stood at 45.10 and for Euro it stood at 64.35 on May 30, 2011. While, the RBI's reference rate for the Yen stood at 55.80 and the reference rate for the Great Britain Pound (GBP) stood at 74.2729. The reference rates are based on 12 noon rates of a few select banks in Mumbai.