Re sees highest rise in 2 months at 47.64
The rupee rose to its highest in nearly two months at 47.64 against the dollar, as a weak dollar lifted sentiments for the local unit. This level last seen on June 12 is 30 paisa stronger than Friday's close of 47.93.
By ET Bureau |
MUMBAI: The rupee rose to its highest in nearly two months at 47.64 against the dollar on Monday, as a weak dollar lifted sentiments for the local unit. This level last seen on June 12 is 30 paisa stronger than Friday's close of 47.93.
Both the dollar and yen fell against most major currencies after data showed US gross domestic product contracted at a less-than-projected 1% annual rate after shrinking 6.4% in the prior three months. This raised hopes of quicker global economy recovery, leading many traders towards non-dollar riskier assets.
The dollar traded near its lowest point this year against a basket of currencies on Monday after higher oil prices and steady global stock markets boosted investments in riskier assets. Strong banking earnings and a UK survey, showing manufacturing activity expanding, also made traders optimistic about the global economy.
"The local unit is tracking the movement in other non-dollar currencies. However, with most of the global majors rising against the dollar, no central bank intervention as such is expected," said a dealer at a large private sector bank.
Government bond prices traded flat on Monday and the 10-year benchmark bond yield hovered near the 7% mark amidst confusion about the central bank's buyback of bonds from the market. There was widespread speculation in the market that the central bank may not continue with its open market bond purchases for the second half of the fiscal.
The government raised a little under Rs 12,000 crore through the sale of securities on Friday, even as it announced an auction for similar amount this week.
Both the dollar and yen fell against most major currencies after data showed US gross domestic product contracted at a less-than-projected 1% annual rate after shrinking 6.4% in the prior three months. This raised hopes of quicker global economy recovery, leading many traders towards non-dollar riskier assets.
The dollar traded near its lowest point this year against a basket of currencies on Monday after higher oil prices and steady global stock markets boosted investments in riskier assets. Strong banking earnings and a UK survey, showing manufacturing activity expanding, also made traders optimistic about the global economy.
"The local unit is tracking the movement in other non-dollar currencies. However, with most of the global majors rising against the dollar, no central bank intervention as such is expected," said a dealer at a large private sector bank.
Government bond prices traded flat on Monday and the 10-year benchmark bond yield hovered near the 7% mark amidst confusion about the central bank's buyback of bonds from the market. There was widespread speculation in the market that the central bank may not continue with its open market bond purchases for the second half of the fiscal.
The government raised a little under Rs 12,000 crore through the sale of securities on Friday, even as it announced an auction for similar amount this week.
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