The Congress party is debating holding a general election in November, six months ahead of schedule, senior party leaders said, reflecting an internal discussion over whether to pull the plug on the shaky ruling coalition or have it serve a full term. Full Article
- Winning ticket for $590.5 million Powerball lottery sold in Florida
- Weakened Congress wondering if early elections will help
- Indian cinema on a mission at Cannes to dispel Bollywood image
- S.Africa minister accuses Indian High Commission official in Gupta scandal
- Pakistan: senior PTI leader Zara Shahid Hussain killed
Confused while buying stocks? Get buy, sell or hold recommendations from VantageTrade. Full Coverage
India rupee falls as traders cautious before Fed meeting; NMDC shares fully sold
* Rupee ends at 54.32/33 per dollar vs 54.26/27 on Tuesday
* NMDC's $1.1 billion share sale fully covered
* October factory output jumps 8.2 pct; rate cut hopes dim
By Subhadip Sircar
MUMBAI, Dec 12 (Reuters) - The Indian rupee fell slightly on Wednesday as caution prevailed ahead of the U.S. Federal Reserve's decision on whether to expand monetary stimulus, but a robust growth in factory output and inflows related to share sales supported the local currency.
The Federal Reserve is expected to announce a new round of bond purchases after its meeting later in the day, setting up the prospect of a round of dollar weakness that could propel emerging market currencies.
Investors are also looking ahead at November inflation date due on Friday, which will be the key ahead of a Reserve Bank of India's policy review on Dec. 18.
"We are likely to see some more government stake sales and M&A deals, which will support the rupee," said Satyajit Kanjilal, chief executive at Forexserve, an advisory firm for corporates.
"I expect the rupee to gain towards 53.50-53.60 levels towards the last week of December."
The partially convertible rupee closed at 54.32/33 per dollar, weaker than its close of 54.26/27 on Tuesday.
A sharp jump in the October industrial output data, led to some gains in the rupee, with some economists saying the slowdown in the economic growth may have bottomed out, although the volatile nature of the report makes it harder to draw strong conclusions.
The rupee was also supported by an up to $1.1 billion share auction in state-run miner NMDC Ltd, which was fully covered, and by inflows related to Bharti Infratel's initial public offering process.
Some outflows were cited by dealers on account of a stake sale by BT Group in Tech Mahindra worth about $186 million.
In the offshore non-deliverable forwards, the one-month contract was at 54.63, while the three-month was at 55.16.
In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 54.47, with total traded volume of $4.1 billion. (Editing by Anand Basu)
- Tweet this
- Share this
- Digg this