With the US Presidential elections out of the way, the rupee began its upward march and closed at 54.20 against the dollar. The local unit had closed at 54.43 on Tuesday. On Monday, it had fallen over 80 paise to close at 54.61. Intraday, the rupee moved between a high and a low of 53.97 and 54.36, respectively.
“The US President might go for some fiscal consolidation which will weaken the dollar against major currencies,” Kuntal Sur, Director, KPMG India said.
All eyes will now turn to Greece, which will vote later in the day on more austerity measures to secure a bailout and avert bankruptcy. Prime Minister Antonis Samaras is expected to narrowly win support for the cocktail of budget cuts, tax hikes and labour reforms, Reuters reported.
Inflow of foreign currency into the Indian stock market will help the rupee appreciate. Much of this will depend on sentiments globally and foreign investors’ perception about India.
Call, bond rates drop a tad
The inter-bank call rates closed marginally lower at 8.10 per cent. It had closed at 8.15 per cent on Tuesday. The 8.15 per cent government security, maturing in 2022, closed slightly lower at Rs 99.72 (yield: 8.19 per cent). It had closed at Rs 99.77 (yield: 8.18 per cent) on Tuesday.