Indian Rupee: Stuck Just Under 16 Month Low

Indian Rupee stayed stuck just under its 16 month low amid a firm undertone in US dollar overseas. The local currency has been under stress in last few days amid rising global crude oil prices and a recovery in local equities has not helped the currency much. The USD/INR is quoting at 67.80, up 0.12% after a reversal in last session. The NSE USD/INR futures are currently trading at 67.84, down marginally on the day. However, the futures edged up from lows around 67.60 levels following a correction in local equities after a positive start.

Key benchmark indices extended fall and hit fresh intraday low in early afternoon trade on fresh selling in index pivotals. At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 145.07 points or 0.41% at 35,242.81. The Nifty 50 index was down 37.75 points or 0.35% at 10,703.35. Domestic stocks kickstarted trading for the day on a positive note after BJP leader B.S. Yeddyurppa was sworn in as chief minister of Karnataka. Stocks reversed early gains to sink in negative zone in morning trade. Stocks extended fall and hit fresh intraday low in mid-morning trade.

Meanwhile, the US dollar index is quoting at 93.28, up marginally on the day, consolidating around its five month high. US economic cues remain supportive for the currency. The Atlanta Federal Reserves GDPNow model has forecast 4.1% growth for the second quarter, the strongest in nearly four years. Rising US bond yields are also keeping the greenback firm.