Indian rupee slightly recovered

July 13, 2012 by sknlakshmi

The Indian rupee recouped some of its previous day losses on Friday tracking slight rebound in the euro overseas as well as regional shares after China's second-quarter gross domestic product data landed in line with forecasts, offsetting worries that a slowdown in China could undermine fragile global growth.

Domestic benchmark indices trimmed gains after hitting fresh intraday highs in morning trade. Most Asian stocks rose on Friday after China's second-quarter gross domestic product data landed in line with forecasts. Provisional data showing that foreign funds remained buyers of Indian stocks on Thursday  and gains in Asian stocks underpinned sentiment on the domestic bourses.

The euro rebounded slightly overnight from sharp lows registered during the week, but edged back lower versus the greenback on Friday after Moody's cut Italy's credit rating by two notches. Moody's warned it could further downgrade Italy's new Baa2 rating, which stands just two notches above junk status, if Milan's access to debt markets dried up.