Reuters Market Eye - Dollar demand from state-run banks erases most of the rupee's early gains. The rupee is at 53.64/65, pulling back from the day's high of 53.375 following the government's announcement of raising import duty on gold, a key source of dollar demand after oil in India. The pair had closed at 53.765/775 on Monday.
"Market went excessive short in the morning. So there is some covering up now," says a dealer with a foreign bank.
India has raised the import tax on gold by 2 percentage points to 6 percent to curb purchases and rein in a ballooning fiscal deficit, but industry officials expect only a moderate drop in demand.
However, the rupee has turned the corner and is seen on a strengthening trend following the recent fiscal and financial reforms undertaken by the government, dealers say.
(Reporting by Suvashree Dey Choudhary)
Asia stocks wary, dollar slips before Fed Chair Yellen's speech
SINGAPORE/TOKYO Asian stocks were largely steady on Friday, with modest losses in some markets and gains in others reflecting nervousness before a keenly anticipated speech by U.S. Federal Reserve Chair Janet Yellen.
Australia warns shipbuilder DCNS after massive security leak
SYDNEY Australian defence officials warned French naval contractor DCNS to beef up security in Australia, where it is preparing to build a A$50 billion ($38.13 billion) fleet of submarines, in the wake of a massive data leak, a government spokesman said on Friday.
Gold steady above 4-week lows as dollar slips ahead of Yellen speech
Gold held steady on Friday above 4-week lows hit in the previous session, as the dollar slipped ahead of a speech by Federal Reserve Chair Janet Yellen that would be closely watched for cues on U.S. interest rates.