Rupee at 6-week highs as dollar weakens September 23, 2009
Posted by dhirendra08 in Accomodative Policy, Low Currencies.Tags: Asian Market, Asian Shares, Basket of Currencies, Dollar, Equities, Fund Inflows, Indian Shares, Rupee, State Bank of Travancore
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Good morning friends. The rupee rose to a six-week high on Wednesday as the dollar fell to a one-year low against a basket of currencies and as some gains in Asian shares raised hopes of further foreign fund inflows.
At 10:28 a.m. (0458 GMT), the partially convertible rupee was at 47.91/92 per dollar, stronger than Tuesday’s close of 47.9550/9650.
In early deals the rupee hit 47.85, its highest since Aug. 10.
“The rupee is tracking the crosses and also equities,” said V. Kumar, chief dealer with State Bank of Travancore, who said 47.80 was an important technical level.
“Once 47.80 breaks, 47.50-47.20 should be the range for this week,” he said.
The low-yielding dollar fell to a one-year low against a basket of currencies on Wednesday as speculators dumped it ahead of a Federal Reserve policy announcement later in the day.
Expectations are growing that the Fed will reiterate its intention to keep a super-accommodative policy for an extended period.
The dollar index, which measures the dollar’s value against a basket of six major currencies, was down 0.24 percent at 75.934, having fallen to a one-year low of 75.915.
Asian markets were slightly higher, with MSCI’s measure of other Asian markets up 0.43 percent.
Indian shares were flat in early trade on Wednesday, bouncing around their previous close after a five-day run of gains.[.BO]
One-month offshore non-deliverable forward rupee contracts were quoting at 47.86/96. - Yahoo
