Rupee opens high at 61.81 against previous close of 61.93 and trading within the same range of 61.70 to 62.0 as increasing inflow in domestic market has offset the effect of strong dollar.
According to exchange report yesterday, foreign investors bought 4.74billion rupees of local stock while domestic investors sold stock of 5.86b rupees. Also in debt market, foreign investors increased holding of rupee denominated debt by $290.9m to $49.9b on Dec. 2.
Today government has planned to sale 5% stake of SAIL (Steel Authority of India Ltd.) or 206.5m shares at the floor price of Rs.83 as it has decided to go for divestment plan of 58000crore during this fiscal. Sale of five percent stake may cash in Rs.1740crore, looking at current market price.
On the other side dollar has strengthened after Service PMI reported better than expected growth for Nov. Institute of Supply Management posted improvement in Service Industry by 2.2 points to 59.3 against last reading of 57.1. ADP report on employment has also come positive as jobs in November increased by 208k. Government will release Non-Farm Employment data today which is expected to improve further. Solid job growth may further strengthen U.S. dollar.
Dollar index which measures the performance of dollar against six major currencies rose by 0.04% to 88.69 as Yen weakens near to 120 a dollar.