Rupee was mostly steady at one-year lows on Tuesday as investors wait for the stock market opening to determine whether foreign investors are still keen to invest after weak factory data a day earlier.
At 9:20 am, the partially convertible rupee was at 42.06/42.07 per dollar, barely moved from Monday’s close of 42.05/06.
Oil prices eased on Tuesday as some investors saw a recent rally to record highs as excessive, while Asian shares gained as banks were bolstered by further signals the worst of the credit crisis may now be over.
Industrial output grew 3.0 per cent in March from a year earlier, its weakest growth in six years as high interest rates squeezed demand for consumer goods.
The stock market has fallen almost 17 per cent in 2008 due to foreign fund selling of more than $2.9 billion.
Capital inflows are a key driver for the local unit. The rupee has lost 6.3 per cent against the dollar so far in 2008 to be Asia’s weakest currency behind the Korean won.
The rupee rose more than 12 per cent in 2007.
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