Indian rupee strengthened slightly on Tuesday, retreating from its seven week lowtouched in the previous session. The domestic currency for the front month contract on NSEopened Tuesday at Rs. 46.83 per US Dollar, marginally higher from its previous close of46.85 on Monday. The local currency was then seen edging forward during the course of theday, registering the day’s high at 46.72. The contract was seen last trading at theday’s high of 46.72, losing 0.13 paise or 0.29% as compared to the previous close.Rupee registered an intra day low of 46.85 in the initial trades and began to appreciatefrom thereon. Rupee is expected to find an intra day support at 46.59.
The euro inched up against the dollar on Tuesday but remained within sight of an 8-�month low hit last week, dogged by persistent worries about the fiscal health of some eurozone countries. India’s key benchmark indices opened slightly lower after the USmarkets suffered a severe setback on Monday with the Dow sliding below the 10,000 mark.However, recovery in Asian markets cushioned sharp fall. The BSE 30-share Sensex was down40.37 points or 0.25% to 15,895.24, after oscillating in a band of 15,940.73 and 15,862.90so far.
Meanwhile, spot rupee was last trading at 46.67 against the US dollar at 11.16 AM IST ascompared to 46.81 in the last trading session, losing 0.14 point or 0.30%, as per the datafrom CCIL.
In the domestic bond market, the yield on most traded 10-year benchmark federal paper,6.35% GS 2020, traded marginally low by 1 basis point at 7.67% at around 10.58AM IST,compared to yesterday's close of 7.68%. Meanwhile, the US Treasury yields closed high onMonday, with investor's appetite increasing for riskier assets. This reflected on thelocal bond market sentiment pushing the yield high.
Meanwhile, light sweet crude oil for March delivery was trading down 0.01 cents to 71.88per barrel on the GLOBEX division New York mercantile exchange. Oil futures slipped below$72 a barrel in the early Asia electronic session today following the sell off in theequities. Sentiments were also weighed by concerns about European sovereign debt.
