International Business Times

October 18, 2011 22:15 GMT

Rupee to Retreat From 1-Week Low; Shares Watched

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Rupee to Retreat From 1-Week Low; Shares Watched

 The rupee should pull back Wednesday from the one-week low reached in the previous session, supported by expectations for foreign fund inflows and the dollar's losses overseas.

* Asian shares were higher, but gains were capped by a cut to Spain's sovereign credit rating from Moody's Investors Service that kept investors' risk appetite in check.

* At 0230 GMT, the MSCI index of Asian stocks ex-Japan was up 0.7 percent while the Nifty India stock futures traded in Singapore were 0.3 percent higher, suggesting a higher start to the local market.

* The rupee is affected by foreign fund flows into and out of the domestic sharemarket which will be watched for cues during the day.

* Traders forecast the rupee to open around 49.15 per dollar and move in a 49.10 to 49.40 range. It had ended 0.7 percent weaker on Tuesday at 49.29/30, after dropping to 49.36, its weakest since Oct. 12.

* The euro inched lower on Wednesday after Moody's cut Spain's government debt rating by two notches, giving up some gains made on a report that France and Germany have reached a deal to bolster the euro zone's bailout fund.

* The euro was trading at $1.3763, compared with $1.3699 when the rupee closed on Tuesday. The index of the dollar against six major currencies was at 77.023 points, sharply below 77.314 on Tuesday.

Copyright 2012 Thomson Reuters. All rights reserved.

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