Forex

Rupee strengthens to 55.53

Satyanarayan Iyer Mumbai | Updated on August 31, 2012 Published on August 31, 2012

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The rupee appreciated in the second half of the trading session on Friday to close at 55.53 as the euro strengthened against the dollar. “The dollar fell against major currencies as expectations of a monetary stimulus by the US Federal Reserve gained momentum,” Bitupan Majumdar, Lead Analyst (Commodity and FX Derivatives), JRG Wealth Management said. The euro, for instance, gained to 1.26 against the dollar from the day’s low of 1.2496.

Monetary stimulus by the Federal Reserve is seen as breathing life into the world’s largest economy and improving sentiments across the world.

The rupee pared early losses, after touching a low of 55.77, as India’s GDP data came in at a higher-than-expected level of 5.5 per cent.

The rupee remained range-bound in the 55.60 to 55.70 band for the better part of the week. Month-end demand from oil importers also kept up the pressure on the domestic unit.

The local unit had closed at 55.63 against the American currency on Thursday.

Rupee has depreciated by about 9 per cent since the beginning of the fiscal (April 2012). The Indian unit has been hammered by global developments and uncertain policy environment at home.

Call, bonds ease

The interbank call rates closed at 7.95 per cent from previous close of 8 per cent.

The 8.15 per cent government security, which matures in 2022, closed lower at Rs 99.38 (yield: 8.24 per cent). It had closed at Rs 99.78 (yield: 8.18 per cent)



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Published on August 31, 2012
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