0407 GMT [Dow Jones] The USD/INR is higher, playing catch up after
falling to a one-week low within minutes of opening trades. The pair
is at 55.42 after hitting the low at 55.27 vs 55.39 late Friday in
Asia. The INR had an upper hand against the greenback, in line with
advances in currencies and stocks across the region after Greece
elected a pro-bailout party in polls Sunday, removing fears of the
country's exit from the euro currency bloc for the time being. Still,
the INR's gains were predicted to be short-lived. "While the
possibility of a 25 basis point rate cut later today increases
depreciation on the rupee, the pair is also seeing some upward
adjustment after the dollar fell swiftly late Friday on likely RBI
intervention," a trader with a foreign bank says. The Sensex is up
0.9%. The trader tips the pair to stay in a 55.25-55.55 band ahead of
the rate decision, due 0530 GMT. (khushita.vasant@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
June 18, 2012 00:07 ET (04:07 GMT)
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