Rupee streaks to 2-week high on bearish $ bets

31 Oct 2017

Consolidating strong recovery for the second-straight day, the rupee edged higher by 10 paise to end at a fresh two-week high of 64.75 against the dollar owing to sustained selling of US currency by exporters.
Subdued greenback overseas along with abundant capital inflows into domestic equities largely supplemented strength to the local currency.
The upbeat trend was also supported by unwinding of long-dollar positions by speculators and local banks ahead of FOMC decision.
The US Fed will take center stage once again on the conclusion of its November FOMC meeting on Wednesday and subsequent release of its interest rate decision.
Foreign investors pumped in close to USD 3 billion in the Indian capital markets so far this month due to "high nominal and real yields" and stable macroeconomic conditions.
According to the latest depository data, FPIs invested a net sum of Rs 2,806 crore in the stock markets and another Rs 15,132 crore in debt, taking the total to Rs 17,938 crore (USD 2.75 billion) during October 3-27.
In the meantime, the greenback gave back some of last week s strong gains in the midst of fresh US political risk and also impacted by event risk going forward into FOMC meet outcome on Wednesday amid slowed tax reform.
Meanwhile, Brent crude hovered above the significant USD 60-barrel level supported by bullish nearterm outlook.
In the meantime, domestic equity markets recorded minor losses, pulling back from their overnight recrod highs as investors turned catious amid a broad decline that was led by metals, auto and Tech stocks.
At the Interbank Foreign Exchange (FOREX) market, the rupee opened slightly higher at 64.83 from Monday's close of 64.85 and largely traded in a tight range due to lack of fresh drivers.
After scaling a new intra-day high of 64.72 in later afternoon deals, the local unit finally settled down at 64.75, showing a rise of 10 paise, or 0.15 per cent.
The rupee has appreciated yesterday by a solid 20 paise. (PTI)