Money Market Guru — The Indian rupee slipped lower in early trades on Tuesday, 21 March 2017 due to appreciation of the American currency overseas. Increased demand for the US currency from importers also weighed down the currency. However, a higher opening in the domestic equity market capped the losses.
The domestic currency opened at Rs 65.39 against the dollar and fell further to a low of 65.45 so far during the day. In the spot currency market, the Indian unit was last seen trading at 65.3850. The rupee had closed yesterday at a fresh 16-month high of 65.36 against the greenback in the face of dollar unwinding from exporters and banks.
Domestic benchmark indices edged higher in early trade on positive Asian stocks. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 38.72 points or 0.13% at 29,557.46. The Nifty 50 index was up 9.35 points or 0.1% at 9,136.20.
Overseas, Asian shares edged higher on the prospects of a less-hawkish Federal Reserve policy trajectory. The main US stock indexes closed marginally lower yesterday, 20 March 2017 for the third straight day of losses, as investors were reluctant to make big bets without major economic or corporate news.
Meanwhile, the U.S. dollar index, which measures the greenbacks strength against a trade-weighted basket of six major currencies, eased 0.14% to 100.02. Overnight, the dollar recovered from early session losses to trade slightly higher against a basket of major currencies on Monday, as sterling slipped, following news that Article 50 will be triggered next week, while a softer tone on protectionism from G20 financial leaders at the weekend weighed on upside momentum. — Money Market Guru — Pia