Rupee continues to decline

August 28, 2012 ஆக்கம் sknlakshmi

Rupee shed further gains today as euro continues to retreat from highs registered last week and as local as well as regional shares ease ahead of the gathering at Jackson Hole Wyoming, later in the week. The domestic currency commenced lower. Local shares were beaten on growing worries a gridlocked parliament will delay the passage of policy reforms. Volatility continued in local equities as the benchmark indices trimmed losses after hitting fresh intraday lows in morning trade. Asian stocks edged lower Tuesday, with investor sentiment dampened after the Japanese government cut its economic forecast for the first time this year, citing "some weak movements," such as slumping exports.

Meanwhile month end dollar demand by oil marketing companies also weighed on the local unit. The euro that climbed to a seven week high last week on hopes of European Central bank actions is seen losing momentum. Market players trimmed their long positions in risk currencies ahead of a central bankers' meeting later in the week