Rupee ends at up at 40.60/dollar
The rupee on Tuesday closed at 40.60 to the dollar, against Monday’s close of 40.67/68. It had opened the day firm at 40.60/62.
By INDIATIMES NEWS NETWORK |
The rupee on Tuesday closed at 40.60 to the dollar, against Monday’s close of 40.67/68. It had opened the day firm at 40.60/62.
Absence of dollar demand from oil companies and fresh dollar sales saw it rise close to the 40.50 level during the day. Monday, it had touched 40.525, the highest intraday level since May 22, 1998.
The rupee also rose on views that a stronger yuan will make Indian goods more competitive in global markets following China’s decision last week to widen the trading band of the yuan versus the dollar to 0.5% from 0.3%.
However, the rupee’s rise has led to speculation that state-owned banks will buy dollars on behalf of the Reserve Bank of India to curb further rise.
Absence of dollar demand from oil companies and fresh dollar sales saw it rise close to the 40.50 level during the day. Monday, it had touched 40.525, the highest intraday level since May 22, 1998.
The rupee also rose on views that a stronger yuan will make Indian goods more competitive in global markets following China’s decision last week to widen the trading band of the yuan versus the dollar to 0.5% from 0.3%.
However, the rupee’s rise has led to speculation that state-owned banks will buy dollars on behalf of the Reserve Bank of India to curb further rise.
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