The Hindu Business Line : Rupee strengthens

The rupee rose against the greenback on Tuesday, as traders were selling dollars and unwinding their positions ahead of the US Federal Open Market Committee (FOMC) meeting on Tuesday. The home currency opened stronger at 40.64/66 and strengthened through the day to finally end at 40.50/ 52, against the previous close at 40.72/73.

Dealers said that market players were liquidating their dollar positions at the longer end, in anticipation of a rate cut. "Traders are expecting a 0.75 - 1 percentage point cut in US interest rates. The rupee will, however, track the movement of global stock markets, post the FOMC meeting," said a dealer at a private bank.

In the forward premia market, the 6 month closed at 1.76 per cent (1.54) and the 12 month ended at 1.27 per cent (1.14). - Our Bureau

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