The Hindu Business Line : Rupee ends 14 paise stronger

MUMBAI: Extending its rally for the second consecutive day on Monday, the rupee gained 14 paise against the US dollar to close at 46.47/48 on sustained dollar selling amid a firm trend in domestic bourses.

The rupee drew support from weakness in dollar against other major global currencies. The local unit moved in a range of 46.41 and 46.59 after resuming firm at 46.50/51 a dollar against its last close. Dealers at the Interbank Foreign Exchange (forex) market said the local rupee rose as exporters sold the US currency after it fell to nearly six-week low in overseas markets.

The American currency dropped to its recent lows against a basket of global currencies during the day after the US Fed's comments led to expectations that the US monetary policy may remain slack for a long period.

Federal Reserve president James Bullard on Sunday said the apex bank should keep alive its mortgage-related asset buyout programme beyond a planned end date to help stimulate the economy.

The rupee's upward movement was further propelled by a strong equity market, which saw the BSE benchmark Sensex end higher by 158.33 points or 0.93 per cent on the back of strong global cues.

The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.49 and for the euro at Rs 69.43. - PTI

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