Indian rupee trades under 46 per dollar for the first time in more than a month onWednesday as positive domestic as well as regional share markets eased investors concernof a possible slowdown yet again. Meanwhile, a strengthening euro as against the US Dollaramid slightly easing concerns about Greece's debt crisis that helped the single Europeancurrency to rebound from a nine-month low has also aided the rupee gain.
Rupee for the front month contract on the NSE appreciated against the US Dollar to breachthe 46 mark for the first time in six weeks. The domestic currency started Wednesday atthe day’s low of Rs. 46.06 per US Dollar. The contract moved under the 46 mark withinthe initial few trades and hit an intra day high at 45.94. Rupee was last seen trading at45.98, gaining almost 0.13 paise or 0.29% from the previous day close of 46.12. Rupee onNSE is expected to find an intra day support at 45.90.
The key benchmark indices trimmed gains after hitting fresh day's high in morning tradetriggered by firm Asian stocks. The BSE 30-share Sensex was up 114.40 points or 0.68%, offclose to 25 points from the day's high. Asian shares rose for a fourth straight sessionand the euro extended its rebound against the dollar on Wednesday 3 March 2010 asinvestors held out hope for a bailout package for debt-ridden Greece.
Spot rupee was last trading at 45.88 against the US dollar at 11.28 AM IST as compared to46.02 in the last trading session, gaining 0.14 points or 0.29%, as per the data fromCCIL.
In the domestic bond market, the yield on most traded 10-year benchmark federal paper,6.35% GS 2020, traded low at 7.93% at around 11.28 AM IST compared with yesterday's closeof 7.95%. Bond yields edged down during the early trade with traders covering shortposition after the recent sell off. However, the supply concern for the next fiscal weighsthe bond market, restricting the yields from falling steep.
Meanwhile, light sweet crude oil for April delivery rose by 0.08 cents at US$79.76 on theGLOBEX division of New York mercantile exchange.
