Rupee depreciated, EU raised 4.75 billion euros ($6.7 billion) for Portugal

The Indian rupee fell over three-month low v/s the U.S. dollar as concerns over Greece's sovereign
debt problems continued to lead risk aversion. The USDINR May future on MCXSX rose to 45.45, to
finally settle at 45.3575. The BSE benchmark SENSEX fell 164.73 points, or 0.9%, to close at
17,847.24. The gain in US dollar till the early session pressurized the Indian rupee which had
pushed the USDINR May future contract to 45.45, however later fell marginally on correction in US
dollar from the European session. In cross pairs, the EURINR May future gained later to close at
63.81, up 10 paisa. The GBPINR rose 56 paisa to close at 73.6050. the Yen traded stable v/s the
Indian rupee with JPYINR May future closed the session at 55.26, unchanged from previous closing.
In the overnight market, EURUSD remained stable to close at 1.4081 and currently heading higher
in Asia to trade around 1.4158 levels. The GBPUSD has been advancing further after a firm close at
1.6272 in New York trading and currently at 1.6320 in Asia.
In recent news, the EU raised 4.75 billion euros ($6.7 billion) for Portugal in a new bond issue
Wednesday, while the IMF gave its first tranche of emergency funding as part of a joint 78-billioneuro
bailout. The European Union funds will be delivered to Portugal on June 1, the European
Commission said, the day after a first bond issue raised 1.75 billion euros for Lisbon and 3.0 billion
euros for Ireland, another bailed out euro zone nation. Euro zone states are providing another third
through the European Financial Stability Facility, which was created last year to prop up economies
in trouble after a huge bailout for Greece. It has supported Euro today to push the EURUSD higher
to 1.4150 from 1.4080 in New York and expected to keep the positive momentum going during the
Asian market.
The US is due to release its GDP data for 1st quarter which is expected to read at 2.2% from 1.8%
earlier. A better than expected US GDP is likely to push the US dollar higher as market feels it will
be a better proposition for Fed to close the QE in June.