MUMBAI: The Indian rupee eased on Monday but managed to claw back from the day's low on the back of a rally in local equities and a slight recovery in the euro, ahead of a key vote in Greece to approve an austerity plan.
The market view on the rupee remains mostly bearish due to sticky domestic inflation and a euro that remains under pressure from the simmering debt crisis.
The partially convertible rupee ended at 45.03/04 per dollar, weaker than its previous close of 44.99/45.00. In early trades the rupee had weakened to 45.14 -- a level not seen since May 27.
"Flows are pretty much balanced. So cues on the Greece front are going to be crucial," said Ananth Narayan G., head of fixed income, currencies and commodities at Standard Chartered Bank.
"The short-term view on the rupee is a move between 44.50 and 45.50, with a bias towards the latter," he said.
The euro was $1.4209 versus $1.4221 at end of local currency trade on Friday, while the index of the dollar against six major currencies was down 0.16 percent at 75.544 points from 75.360 points.
Copyright Reuters, 2011
Comments
Comments are closed for this article.