The Indian rupee on Friday ended flat at 39.95 against a US dollar after showing signs of strengthening on dollar selling by exporters.The rupee moved in a relatively small range of 39.91 and 39.98 during the day after resuming higher at 39.91/92 a dollar from its previous close of 39.94/95 a dollar.
Forex dealers said rising inflation rate failed to spark a surge in rupee as traders seemed discouraged by possibility of central bank intervention to keep the local currency above 39.90 level.Meanwhile, inflation soared to 40-month high of 7.41 per cent raising possibility of stringent monetary measures in the quarterly review of the Reserve Bank of India.
Analysts said high inflation could help rupee to appreciate as a robust rupee would help contain inflation.Indian benchmark Sensex ended up 113 points, or 0.72 per cent, while Asian indices gained about 1.0 to 2.5 per cent. The capital inflows, a key driver of the rupee, are likely to pick up if net purchases by Foreign Institutional investors in the last four days is any indication, commented a dealer with bank.
Forex dealers said rising inflation rate failed to spark a surge in rupee as traders seemed discouraged by possibility of central bank intervention to keep the local currency above 39.90 level.Meanwhile, inflation soared to 40-month high of 7.41 per cent raising possibility of stringent monetary measures in the quarterly review of the Reserve Bank of India.
Analysts said high inflation could help rupee to appreciate as a robust rupee would help contain inflation.Indian benchmark Sensex ended up 113 points, or 0.72 per cent, while Asian indices gained about 1.0 to 2.5 per cent. The capital inflows, a key driver of the rupee, are likely to pick up if net purchases by Foreign Institutional investors in the last four days is any indication, commented a dealer with bank.
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