06 June 2011

Rupee up

The rupee is expected to rise early on Monday after a weak U.S. jobs data pushed the euro up, but defence and oil related payments and shaky shares could weigh. At 9:25 a.m., the partially convertible rupee was at 44.7525/7550 per dollar, 0.1% stronger than its previous close of 44.81/82.

At 0242 GMT, the MSCI index of Asian stocks ex-Japan was a tad up at 0.06%, but the Nifty India stock futures traded in Singapore were down 0.69%. The U.S. dollar slid to a fresh one-month low against a basket of major currencies in early Asia trade, finding no support after disappointing jobs data bolstered expectations that U.S. interest rates will stay low for longer.

The euro extended gains to reach its highest level in more than four weeks at USD 1.4656 , further helped by news that Greece will probably receive a vital slice of aid in July to avoid a default. The euro was later trading at USD 1.4642, compared with USD 1.4494 when the domestic market closed on Friday.

The index of the dollar against six major currencies was at 73.706 points from 74.310 points when the domestic market closed on Friday. The U.S. Labor Department on Friday said U.S. employers hired 54,000 workers in May, well below the median consensus of a 150,000 increase among economists polled by Reuters. This was the weakest monthly job growth since September 2010.

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