| Date: |
15-10-2015 |
| Subject: |
Rupee trades higher against US dollar |
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NEW DELHI: The rupee appreciated by 29 paise to 64.74 against the dollar in early trade on Thursday, ahead of the domestic trade deficit data scheduled for release later in the day. The domestic currency had advanced 15 paise to settle at 65.03 against the greenback on Wednesday on fresh dollar selling by banks and exporters.
The Biege book released by the US Fed on Wednesday suggested that the US economy grew modestly, between mid-August and early October with little inflation pressure, as a strong dollar weighed on manufacturing at large.
"Manufacturing turned in a mixed but generally weaker performance during the latest reporting period, with a number of districts noting adverse effects from the energy sector. Some strength was reported in the motor vehicles, aerospace and transportation equipment industries, while metals industry was generally weaker — in part, due to the strong dollar," the Fed said.
Gold climbed to a four-month high on Thursday as sluggish economic data from China and the US stoked speculation that the Fed will not hike rates in the remainder of 2015. The dollar index, which tracks dollar movement against a basket of six major world currencies, stood flat at 93.93.
Meanwhile, data released on Wednesday showed WPI inflation for September increased marginally to 4.5 per cent year-on-year compared with -4.9 per cent in August. "A look at CPI and WPI data indicates that disinflationary forces are broadly intact. Going ahead, we expect WPI to persist in the negative zone, given the weakness in global commodities and global deflation," said Edelweiss Securities.
The domestic equity market, which witnessed massive outflows in the previous two months, has attracted inflows of Rs 2,738 crore so far this month. What has helped rupee remain stable is the foreign inflows to the debt market, which stood at Rs 10,237 crore so far this month.
Source : economictimes.indiatimes.com
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