Monday , May 29 2017
Home / Business / Financials / Sensex trims its early losses; Rupee at 63.97 against US dollar

Sensex trims its early losses; Rupee at 63.97 against US dollar

Mumbai :The benchmark BSE Sensex trimmed its early losses, but is still quoting over 38 points down as interest rate-sensitives remained weak after the Reserve Bank kept key repo rate unchanged in its monetary policy.

The 30-share index was down 36.52 points, or 0.13 per cent, 28,150.54 at 1154 hrs. The barometer had dipped below the 28,000-mark to touch a low of 27,963.71 in late morning trade ahead of the RBI policy.

The gauge had gained 723.85 points in the previous four straight sessions.

The wider NSE Nifty was trading lower by 2.10 points, or 0.02 per cent, at 8,540.95 after slipping below the 8,500-mark before the policy.

Brokers said RBI’s decision to keep interest rate unchanged was largely in line with investor expectations.

The BSE banking index fell 0.50 per cent to 21,603.03, with ICICI Bank slumping 0.22 per cent, while HDFC Bank declined 0.18 per cent.

In its bi-monthly policy review today, RBI kept the short-term lending rate, or repo rate, unchanged at 7.25 per cent and the cash reserve ratio (CRR), the amount of deposits lenders park with RBI, at 4 per cent.

RBI also retained growth target at 7.6 per cent for 2015-16. It has cut rate thrice so far in 2015 by 25 basis points each.

The central bank was widely expected to maintain status quo today, according to stock brokers.

T he rupee recovered 7 paise to 63.97 against the American currency in late morning deals on a bout of dollar selling by exporters.

Earlier, the rupee had opened weak at 64.09 on sustained dollar demand against the overnight closing of 64.04 at the Interbank Foreign Exchange (Forex) market.

It moved in a range of 64.09 and 63.97 per dollar during the morning deals before quoting at 63.97 at 1025 hours.

The dollar index was up 0.13 per cent at 97.58 against a basket of six currencies in the early trade.

Oil prices edged up in early Asian trade following a 5 per cent fall in the previous session as high global production and a weakening economic outlook, especially in Asia, prompted analysts to caution further falls.

In New York, the dollar finished the first trading session of the month higher against its main rivals, retaining gains from the early session despite a disappointing reading of US manufacturing in July.

Meanwhile, the benchmark 30-share index was trading down 145 points, or 0.51 per cent, to 28,041.97 at 1030hrs.