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Rupee Trades Tad Higher At 71.32

Roshni Agarwal

Rupee in Thursday's session opened at 71.32 versus previous close of 71.35.
The home currency in the last two session has gained ground despite dollar gaining strength primarily on account of positive equity market which has run up to fresh high with Sensex scaling past 41000 mark while Nifty also made new lifetime high.

Another reason for the appreciation in the rupee is the huge foreign fund flow that is expected to come to the Indian markets due to Arcelor Mittal - Essar Steel deal.

In a Bloomberg report, it is stated the curbed level of appreciation in the home currency denotes RBI's stand despite significant foreign fund inflow which can hamper the country's exports.

Crude oil fell today after reports suggested that US crude and gasoline stocks surged against expectations and production hit a record. Brent crude futures were down 16 cents, or 0.3%, at $63.90 a barrel by 0141 GMT, having dropped 0.3% on Wednesday. US West Texas Intermediate crude fell 21 cents, or 0.4%, to $57.90, after falling 0.5% in the previous session.

In Wednesday's session rupee closed at a three-week high level of 71.35 per US dollar.
The yield on the 10-year Indian government bond was at 6.47%.

Meanwhile, tracking SGX Nifty indices in India are likely to open negative after closing at a record high on both Sensex and Nifty in the previous session.

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