11 hrs ago
Rupee Rises 28 Paise, Nearing Two-Month Dollar High
The Indian rupee became a little stronger against the US dollar on Tuesday.
It ended the day at 94.94 rupees per dollar.
This was 28 paise higher than its previous closing value.
The rupee was helped by strong economic growth in India and money flowing into Indian investments.
Some traders thought recent MSCI-related investments gave temporary support.
They also said the Reserve Bank of India might have helped support the rupee.
However, weaker Indian stock markets and more expensive crude oil stopped the rupee from rising further.
The dollar itself also became slightly stronger against several other currencies.
The rupee gained 28 paise to close at 94.94 against the US dollar on Tuesday.
The currency reached a nearly two-month high, opening at 95.06 and trading between 94.79 and 95.10.
Robust domestic growth, controlled fiscal slippage and portfolio inflows supported the rupee.
Forex traders said recent MSCI-linked inflows provided temporary support, while the RBI might have intervened.
Weak domestic markets and rising crude oil prices limited the rupee’s gains, according to Mirae Asset Sharekhan analyst Anuj Choudhary.
- Who
- The Indian rupee, the US dollar, forex traders, the Reserve Bank of India and analyst Anuj Choudhary were central to the report.
- What
- The rupee gained 28 paise to close at 94.94 against the US dollar.
- Where
- The interbank foreign exchange market in Mumbai.
- When
- Tuesday’s trading session.
- Why
- The rupee was supported by domestic growth, controlled fiscal slippage, portfolio inflows and possible Reserve Bank of India intervention, while weak domestic markets and higher crude oil prices limited gains.
Key facts
- Closing rate
- 94.94 rupees per US dollar
- Daily movement
- The rupee gained 28 paise
- Opening rate
- 95.06 rupees per US dollar
- Intraday range
- 94.79 high and 95.10 low
- Previous close
- 95.22 rupees per US dollar on Monday
- Dollar index
- 99.58, up 0.15 per cent
- Key constraints
- Weak domestic markets and a surge in crude oil prices
Quotes
Anuj Choudhary
Research Analyst at Mirae Asset ShareKhan
“The Indian rupee gained on possible intervention by the RBI and upbeat macroeconomic data. However, weak domestic markets and a surge in crude oil prices capped sharp gains.”
thehansindia.com
Sources
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