Thursday, 13 October 2011

Rupee weakens on local shares, euro's drop


The rupee weakened on Friday tailing negative local shares and dollar demand from oil firms, with the weakness in the euro also weighing.
* At 9:20 a.m., the partially convertible currency was 49.17/18 per dollar, from Thursday's close of 49.12/13. Traders expect the rupee to trade in a 49.00-49.30 range in the day.
* Inflation data due around noon (0630 GMT) will be watched for cues on the likely stance of the central bank, which reviews policy on Oct. 25. Most people are expecting a 25 basis points increase in key rates.
* The wholesale price index probably rose 9.70 percent in September from a year earlier, easing slightly from 9.78 percent in August, a Reuters poll showed.
* The main 30-share BSE index was down 0.25 percent at 16,841.03 points, with 21 of its components in the red.
* The euro edged lower on Friday after S&P cut Spain's ratings, but still remained on track for the biggest weekly rally since January after getting lifted by a flurry of short-covering.
* The euro was trading at $1.3755, compared with $1.3737 when the rupee closed on Thursday. The index of the dollar against six major currencies was at 77.141 points, below 77.204 points on Thursday.

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