The Indian rupee posted a decline at commencement on Monday, November 11, 2013, falling past the Rs 63/$ mark, to an over seven-week low tracking the dollar strength globally after an unexpected surge in jobs data, bolstered the case for the Federal Reserve to scale back stimulus as early as next month. The domestic currency opened weaker by 52 paise at Rs 63.00 against the US Dollar and edged up to a high of 62.94 before plunging back to a low of 63.32 so far during the day. In the spot currency market, the Indian unit was last seen trading at 63.28, down almost 80 paise or 1.27% as compared to previous close at 62.48.
Rupee fell on Friday to post its worst week in 2-1/2 months, tracking a weaker euro after a surprise rate cut by the European Central Bank and as state-run oil refiners started sourcing dollars in spot markets.
Domestic benchmark indices weakened once again after they pared initial losses and hit fresh intraday high in morning trade as better than expected October jobs report in US fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. Asian shares edged away from a four-week low on Monday, as a surprise surge in U.S. jobs growth signalled the worlds largest economy was on a firmer footing. At the time of writing, the S&P BSE Sensex was down 80.91 points or 0.39% to 20,585.24 while the CNX Nifty was down 31.10 points or 0.51% to 6,109.65.
Meanwhile, the U.S. dollar held near two-month highs against a basket of major currencies early in Asia today, having staged a broad rally after upbeat U.S. jobs data bolstered the case for the Federal Reserve to scale back stimulus as early as next month.
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