Rupee down by 17 paise at Rs 45.80 per US dollar

The Indian rupee was down by 17 paise at Rs 45.80 per US dollar in early trade today on month-end dollar demand from importers, despite weakness of the greenback in overseas markets.

The rupee resumed lower at Rs 45.70/72 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 45.63/64 per dollar, and hovered in a range between Rs 45.70 and Rs 45.80 per dollar during morning deals before quoting at Rs 45.75/76 per dollar at 1030 hours.

Month-end dollar from importers, mainly oil refiners, was primarily responsible for the rupee's slide against the dollar, a forex dealer said.

In New York, the dollar slipped against other major currency rivals yesterday as weak data out of the US and better news from Europe supported the euro amid further expectations that the Federal Reserve will take action to try to buoy the US economy.

Currency traders were also keeping close tabs on the solid gains in US stocks yesterday, an indicator that investors are shifting back to riskier assets.

Nifty seen Lower, Banks, Tech Down

Indian markets were witnessing selling pressure, in line with other peers, as weak manufacturing data from the US spooked sentiments. Realty, banks and technology were the worst hit while pharmaceutical space was marginally higher.

Nikkei 225 was down 1.32 per cent, Hang Seng declined 0.69 per cent and Seoul Composite fell 2.38 per cent.

Well, looks like the euphoria over the US debt deal has given way to concerns about the health of the global economy. Manufacturing PMI reports from Australia to the US have shown continued moderation. Concerns have also surfaced over the adverse implications of the large spending cuts in the US on the world's largest economy. In addition, a possible downgrade of the US debt rating is still lurking.

At 10:15 AM; National Stock Exchange's Nifty was at 5461.85, down 54.95 points or 1 per cent. The broader index touched a high of 5496.30 and low of 5456.40 in trade so far.
US stocks reversed early gains to finish in the red. Across the Atlantic, European stocks suffered nasty cuts. Asian markets this morning are mostly lower. Nifty futures trading in Singapore are pointing to a weak start.

The trading for the rest of the day will hinge partly on global cues and partly on domestic factors. DLF, MMTC, Piramal Healthcare and Power Grid are among the few companies declaring their results today.

Meanwhile, the government is trying its best to convince all that there is no policy drift and that reforms are on track. The monsoon session will be a key test, as spate of crucial bills are slated for presentation.

Bombay Stock Exchange's Sensex was at 18120.06, down 194.27 points or 1.06 per cent. The 30-share index touched intraday low of 18118.30 and high of 18283.55.