Rupee bounces back from two-week lows

MUMBAI: The rupee bounced back from Monday's two-week lows on an upswing in stocks despite dollar rising against a basket of world currencies.

The downward trend in dollar has been arrested after the government announced better than expected US jobs data. At 12 noon, the rupee was at 47.61 against the dollar weaker than its Monday's close of 47.56.

Dealers also said banks covered short dollar-rupee positions in the background of the rising dollar.

"In addition to risk appetite, with India back on the radar following the election results, capital flows are likely to remain buoyant. This will result in a continued appreciation in the rupee. However, with exports still deep in the red, we could see authorities��� moderate the pace of appreciation," said Citigroup's Rohini Malkani in a report to clients.

Bonds are trading mixed and largely flat as they gear up for another Rs 15,000 crore auction. The yield on the 7.59% paper expiring in 2016 wa trading at 6.92%, 2 basis points higher over its previous close.