Money & Banking

Rupee ends higher by 13 paise against dollar

PTI Mumbai | Updated on June 14, 2011

rupee

The rupee ended higher by 13 paise to 44.73/74 against the US dollar on fresh sale of the American currency on the back of weakness in dollar in overseas markets.

Banks and exporters preferred to reduce their position due to the fall of the dollar in overseas markets, a forex dealer said.

The Bombay Stock Exchange resumed on a promising note but relentless rise in inflation washed away the early gains.

After hovering in a broad range, the key index settled at 18,308.66, a net gain of 42.63 points.

All Asian markets gained today barring Hang Seng, which ended 12 points down after People’s Bank of China hiked reserve requirement ratio by 50 bps. Rupee marginally gained due to poor inflation data.

Headline inflation in the country went up to 9.06 per cent in May on the back of rising manufactured products and petrol prices, which is expected to prompt the Reserve Bank to go for another rate hike at its mid—quarterly policy review meeting later this week.

Alpari India CEO Pramit Brahmbhatt said that USD/INR traded flat throughout the day with only a 10 paisa movement throughout, the later part of the day saw rupee strengthening on positive local equity markets and the rising euro.

“Chinese economic data calmed some investor worries by showing inflation was not as bad as feared and growth still solid, giving a broad boost to risky assets. Indian markets are eyeing the RBI credit policy meet on 16th June in which 25 bps rate hike is expected,” he said, adding that the trading range for the USD/INR will be 44.80 to 45.10.

Published on June 14, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like