Rupee falls as part of global risk sell-off

Rupee falls as part of a global risk sell-off after details of the Spanish bank bailout renew worries about the region’s debt crisis. Reports of official preparations for a Greek exit also keep investors nervous.

[caption id=“attachment_340882” align=“alignleft” width=“380” caption=“Meanwhile Indian equities trimmed gains but continued their firm trade in green in the late afternoon session.”]  [/caption]

Rupee is likely to face near-term resistance at 56.28, the June 1 low. It may not immediately breach record low at 56.52 hit on May 31, traders said.

Meanwhile Indian equities trimmed gains but continued their firm trade in green in the late afternoon session. The sentiments got support from speculations that the Reserve Bank of India in its mid-quarter policy review on June 18 will be compelled to cut key interest rates irrespective of what the headline inflation number may show on June 13.

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The market participants also went on to overlook the disappointing industrial production numbers for April that showed IIP expanded at a frustratingly slow pace of 0.1% in the month of April, indicating gloomy economic growth prospects

Reuters