Rupee was slightly lower during the initial trades on the first trading day of theweek, tracking a weak start to the local share market and mixed regional peers. Thedomestic currency for the front month contract on NSE opened on Monday at Rs. 46.76 per USDollar after closing on Friday at 46.78, losing 0.02 paise or 0.01% as compared to theprevious close. Rupee registered an intra day high of 46.73 and low of 46.82. The keylevel for the counter is 46.80. The Indian rupee is expected to find an intra day supportat 46.90.
After declines in the initial few trades, the local currency managed to gain slightlyduring the first hour. However, rupee is seen depreciating again, currently hoveringaround 46.79 against the global reserve currency, almost 6 points lower from the dayshigh. The euro fell on Monday against the US Dollar as investors unwound risky trades amidgrowing worries about euro zone’s debt problems.
The domestic key benchmark indices saw a dull start mirroring subdued Asian markets, asinvestors remained cautious over sovereign debt problems in the euro zone. The BSE30-share Sensex was down 42.23 points or 0.27%, with select banking and power sharesedging lower. The market breadth was strong.
Meanwhile, spot rupee was last trading at 46.74 against the US dollar at 11.11 AM IST ascompared to 46.73 in the last trading session, losing 0.01 point or 0.03%, as per the datafrom CCIL.
In the domestic bond market, the yield on most traded 10-year benchmark federal paper,6.35% GS 2020, eased 3 bps in early trading to 7.65% at 11.15 AM IST, compared to 7.68% atclose in the previous trading session. The total trading volume on central bank'selectronic trading system stood at Rs 2455 crore.
Meanwhile, light sweet crude oil for March delivery was trading up 46cents to 71.65 perbarrel on the GLOBEX division New York mercantile exchange. Last week the NYMEX March oilfutures contract tumbled to as low as $ 70.20 per falling more than 9% from the weeks highof $ 77.23 per barrel.
