Rupee climbs to near 1-mth high

13 Jul 2017

Bolstering its strong defence against the beleaguered dollar, the rupee on Thursday appreciated by another 9 paise to end at a near one-month high of 64.45 amid a dovish shift in Fed expectations.
Heavy unwinding of dollars by currency speculators and banks in the midst of abundant capitals inflows predominantly supported the upmove.
Asian amid emerging market currencies breathed a sigh of relief after Fed Chair Yellen expressed uncertainty about the effects of tightening on inflation and relayed a cautious outlook as investors recalibrated their expectations for a slower pace of tightening in the US.
The dollar slipped against most of its trading peers.
Expectations that the US Federal Reserve will not tighten its monetary policy until the December meeting, has largely helped emerging market currencies like rupee to gain, a forex dealer commented.
On the domestic marco front, retail inflation hit a "historically low" level of 1.54 per cent in June, while industrial output growth slumped to 1.7 per cent in May from 8 per cent a year-ago amid expectations of a rate cut from the Reserve Bank of India next month.
Meanwhile, basking in the glow of incessant record breaking journey, the flagship Sensex went past the impressive 32,000-mark for the first time ever and the broder NSE-Nifty closed at a new peak of 9,892 - a few points shy of 9,900 on buoyant hopes of RBI rate cut after inflation touched a record low.
The sensex zoomed over 232.56 points to close at new peak of 32,037.38, while Nifty soared 75.60 points to settle at record high of 9,891.70.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 361.25 crore on Wednesday, as per provisional data.
Extending its recovery momentum, the home currency resumed on highly bullish note at 64.39 against overnight level of 64.54 at the Interbank Foreign Exchange (forex) market.
But, the local unit struggled to hold gains, quickly reverting an early spike and traded in a tight range for most part of the session before ending at 64.45, revealing a smart rise of 9 paise, or 0.14 per cent. (PTI)