Rupee Strengthens 9 paise against US Dollar

Euro also bounced back from the low 1.09 on Monday to 1.12 on Tuesday. It was trading at 1.11 at 2.50PM amid hope that the Greek referendum will also result in the verdict in the favor of paying the loan back.

Now the rupee was trading at 63.76 which is up 0.14% from the previous close to the 63.85 at 2.50PM. The local unit also opened at 63.76 per dollar and it touched a high and low of 63.73 and 63.80, respectively.

“The rupee just like other domestic and international markets is in a wait-and-watch mode. Probably dealers have pared their dollar positions because they thought that the market overreacted on Monday and now there is also some talk that there could be behind the scene negotiations if the votes are not in favour of the payback,” said that the dealer with the private sector bank

Sensex was trading more than 27, 640.05 points and down 0.05% or 15.10 points.

This yields on the India’s 10 year benchmark bond and was trading at the 7.87% from the Monday’s close of 7.89% bond yields and prices move in the opposite.

Greece’s is having the deadline to pay back euro 1.6 billion to the International monetary fund (IMF) expires on 30th June. There is no proper clarithy on the impact that is possible default by the Greece and could have on the eurozone because it means that the country should leave the European Union.

Greece Country left wing PM Alexis Tsipras is not in the favor of payback and it had the fact appealed to the people of the country to reject the proposal because this will help the government negotiate a deal more aggressively.

He also stated that he is ready to resign if the vote is a “Yes” in the favour of repayment which will be accompanied by spending the cuts. “if the Greek people want to proceed with the austerity plans in the perpetuity this will leave us unable to lift our head and this will respect it but we will not be the ones to carry it out,” PM said on the state television recently.

Dealers said that the local markets are also watching and waiting for the developments. “The dollar flows are also clearly linked to these Greek developments, hence trader here is also quiet. Till the weekend I expect a 63.60 to 64.20 range,” said the dealer whi quoted.

From the beginning of the year, the rupee lost 1.15%  while the foreign institutional investors have more than $6.39 billion from the local equity and $6.44 from the billion from the bond markets.

The dollar index also measures the US Currency’s strength against the major currencies, was trading 95.34 up to the 0.58% from the previous close of 94.79.

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Pramod Baviskar

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