Rupee opens strong by 15 paise at 39.70/72

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Forex

Mumbai, Jan 22: The Rupee today opened high by 15 paise at 39.70 paise at 39.70/72 against US Dollar from its previous close of 39.55/56 per dollar following the steep downfall in Indian Equity Markets triggered by global setback, brokers said.

They received a negative reports from abroad that ''The yen hit a two-year high against the dollar on Tuesday as Asian shares slid on fears of a US recession, prompting investors to dump risky, higher-yielding assets. The yen later gave up its gains in volatile trade, having initially risen as stock markets in Japan and around the region fell sharply. It jumped to a five-month high against the euro and a 21-month peak versus sterling early on Tuesday.

Growing concerns that the US economy may slide into a recession and that the slowdown could be too sharp for other major economies and emerging markets to escape unscathed, triggered risk reduction and supported the yen.

Such concerns and an increase in market volatility were triggering some unwinding of yen carry trades and supporting the yen, market players said.

The dollar hit a 2-1/2-year low of 105.61 yen on electronic trading platform EBS early on Tuesday but later pared its losses and stood at 106.16 yen as of 0322 GMT.

The euro fell to a five-month low of 152.32 yen on EBS, while sterling fell as low as 204.87 yen the lowest since April 2006.

They later rebounded off those lows.

Later, the Rupee fluctuated widely range between 39.64 and 39.75 in mid noon session on heavy panic selling of dollar by local operators, brokers added.


UNI

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