Rupee ends stronger at 41.08/09
Rupee gained 24 paise to close at 41.08/09 against the US dollar on Tuesday.
By PTI |
MUMBAI: The rupee on Tuesday gained 24 paise to close at 41.08/09 against the US dollar as traders re-leveraged some of the yen-funded carry trades after a cut in key lending rate by the US Federal Reserve on Friday.
In active Interbank Foreign Exchange (forex) market, the rupee this morning breached 41 level and touched a high of 40.97 after resuming sharply higher at 41.12/14 per dollar from Friday's close of 41.3250/3350 per dollar.
The rupee later fell back to 41.27 level in the afternoon trade, reacting negatively to a sharp fall in domestic equity market, which was affected by a political stalemate, caused by the UPA-Left impasse on the Indo-US nuclear deal.
However, fairly heavy dollar buying by banks again helped rupee to close stronger against the Greenback, forex dealers said, citing various other reasons for the rupee's surge.
The rupee sentiment was also aided by easing global credit concerns and a softer yen, they added.
The weakening yen against dollar seemed to have triggered unwinding of carry trades, which in turn, benefitted the rupee, said a dealer with a leading foreign bank.
Meanwhile, investors remained cautious that the risk aversion could persist amid reports of renewed fears of credit squeeze in European markets.
In active Interbank Foreign Exchange (forex) market, the rupee this morning breached 41 level and touched a high of 40.97 after resuming sharply higher at 41.12/14 per dollar from Friday's close of 41.3250/3350 per dollar.
The rupee later fell back to 41.27 level in the afternoon trade, reacting negatively to a sharp fall in domestic equity market, which was affected by a political stalemate, caused by the UPA-Left impasse on the Indo-US nuclear deal.
However, fairly heavy dollar buying by banks again helped rupee to close stronger against the Greenback, forex dealers said, citing various other reasons for the rupee's surge.
The rupee sentiment was also aided by easing global credit concerns and a softer yen, they added.
The weakening yen against dollar seemed to have triggered unwinding of carry trades, which in turn, benefitted the rupee, said a dealer with a leading foreign bank.
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Meanwhile, investors remained cautious that the risk aversion could persist amid reports of renewed fears of credit squeeze in European markets.
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