RUPEE RECOVERS ON REGULATORY ACTION; USD SOFTENS ON BERNANKE REMARKS RECAP Rupee advanced against the US dollar in late Wednesday trade and managed to close below 60.00 in spot market, aided by steps taken by the RBI and SEBI to curb speculative trading in the currency futures. However, weak domestic equities and constant dollar demand from importers kept the upside limited. Meanwhile, the Government reportedly opened the single door window for OMCs to avoid high volatility in the exchange traded currency futures. US dollar remained lower against most global currencies, with the Euro and the Yen recovering against the greenback after minutes from the Federal Reserve’s June policy meeting offered no clues on when the US central bank will likely begin scaling back its extraordinary monetary stimulus efforts. Speaking at a conference, Fed chief Ben Bernanke said that the US central bank wouldn’t be in a hurry to raise short-term rates until the jobless rate falls to its 6.5% target. Greenback logged a three-year high against the Pound, as the sterling was hit after weaker-than-expected data on UK industrial production. Gold jumped to a two-week high after Fed Chairman Bernanke said the US central bank will continue to pursue an accommodative monetary policy to support the economy.
Posted on: Thu, 11 Jul 2013 04:17:26 +0000
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