The Indian rupee opened higher on Tuesday following a stronger share market and anovernight decline in the US Dollar. The Indian rupee for the front month contract on NSEstarted Tuesday in a slightly upbeat mode, immediately hitting a high of Rs. 46.25 per USDollar in the first few trades. The pair was trading within a narrow range of 46.29- 35and was consolidating slightly above 46.30 after ending yesterday at 46.44 against the USDollar. The key level for the counter is 46.31 and in case if the Rupee stays above thisthreshold, there is a possibility of an intra day resistance at 46.36 coming in the play.
The US dollar fell against most major currencies on Monday as positive global economicdata induced investors to buy riskier assets after US manufacturing activity expanded tothe highest level since August 2004. However, the dollar strengthened slightly followingthe Australian central bank's decision to leave interest rates unchanged that led theIndian rupee to trim some of its early gains on Tuesday.
The domestic share market jumped in early trade tracking firm Asian stocks, which surgedafter the latest data showed a jump in manufacturing activity across Asia, the euro zoneand the US. The key benchmark indices BSE 30-share Sensex was up 54.13 points or 0.33%, upclose to 70 points from the day's low and off close to 115 points from the day's high.
In the currency futures market, the most actively traded currency future contract on theNSE, USDINR February 2010 was last seen quoting at Rs 46.32 after closing on Monday at46.44. The domestic currency gained 0.12 paise or 0.26% as compared to the previous close.
As per the data from CCIL, spot rupee was last trading at 46.25 against the US dollar at12.03AM IST as compared to 46.38 in the last trading session, losing 0.13 points or 0.27%.
In the domestic bond market, the yield on most traded 10-year benchmark federal paper,6.35% GS 2020, increased 3 bps in the early trading to 7.66% at 12.03AM IST, compared to7.63% at close in the previous trading session. The yield rose following sharp rise in USbond yields, while the sentiments were already worsened by the comment from central bankthat it would be difficult for RBI to manage large government borrowing program nextfiscal.
Meanwhile, Oil futures rose near the $75 a barrel today of back of strong gains in theAsia equity market. Crude Oil for March delivery was trading up almost 26 cents at $74.69a barrel in electronic session.
