Rupee: NSE Futures Recover In Intraday Moves

The Indian Rupee stayed supported today after its recent recovery from an 18 month low mark against the US dollar. The domestic currency has been lingering around its one month high this week and witnessed promising moves in early hours of trade. A slightly weak undertone in the local equities pulled the benchmark NSE USD/INR futures towards 67.40 levels in early moves but the pair dropped back towards 67.25 mark, indicating good support for the local currency. In the global markets, the US dollar index is hovering just under 94 mark after hitting its one year high last week. The INR is quoting at 67.10 against the US dollar, down marginally on the day in the global markets.

In local equities, the trading turned volatile as key benchmark indices sharply pared losses in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was down 20.88 points or 0.06% at 34,991.01. The Nifty 50 index was down 13.80 points or 0.13% at 10,614.70. The Sensex was trading a tad below the psychologically important 35,000 mark. Most IT and pharmaceutical shares declined.

On the macro front, the Nikkei India Services Business Activity Index fell to 49.6 last month from 51.4 in April. A reading below 50 indicates contraction in activity, while a number above it signals expansion. Services activity in the country fell below the 50-point-mark for the first time since February, when the Index reading stood at 47.8. The indices displayed some volatility in early trade and later slipped into negative terrain in morning trade. Indices hit fresh intraday low in mid-morning trade. Indices sharply pared losses in early afternoon trade.