Job growth in US may spell bad news for Indian rupee - Indian Express

PTI : Mumbai, Sun Jul 07 2013, 13:03 hrs After falling for ninth consecutive week against dollar, rupee is likely to remain under pressure this week as well as better-than-expected job growth data makes the case stronger for the US Fed to taper its monetary easing programme earlier than expected, say experts. "Job growth data from US is likely to put pressure on the rupee on Monday as the dollar is likely to strengthen against all major currencies. As an immediate reaction, rupee may further depreciate due to this," P Paramasivam, general manager who looks after treasury operations, at Corporation Bank told PTI. He, however, said the rupee is likely to pull back from the possible lows in the remaining trading sessions. On Friday, US job growth data showed that 1.95 lakh new jobs were created in June, which was above market expectations. US Fed chairman Ben Bernanke had in mid-June said he would taper USD 85 billion worth monthly liquidity infusion by the end of the year if economic data is upto the central bank's expectations, sending global currencies down. The rupee was the worst performer among the Asian units losing 8.6 per cent in the April-June quarter. According to analysts, encouraging job data from US may prompt the US central bank to taper its stimulus programme, which would result in foreign institutional investors pulling out from emerging markets. "The rupee will take cue from the job data arising out of US for June. The direction of the domestic currency will depend on the opening on Monday," chief currency strategist at Geojit Comtrade Hemal Doshi said. As far as the technical side is concerned, if rupee breaches 59.90 this week, it is likely to appreciate from the lows going forward, Doshi added. On Friday, rupee closed at 60.22 to the dollar on fresh demand of greenback from importers even as RBI had reportedly intervened to arrest the slide in the local currency. ... contd. ALSO READ Grounded Kingfisher's shareholder base zooms to record high Air India extends $500-mn bridge financing offer deadline Yahoo! Hack India to be held in Hyderabad DoT against another chance to Airtel on Rs 650 cr penalty case Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEt_D6jSdplSYrDjwudZEDI62jSEA&url=http://www.indianexpress.com/news/job-growth-in-us-may-spell-bad-news-for-indian-rupee/1138709/

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