Rupee trading at its highest levels

MUMBAI: The rupee rose to its highest levels in more than two weeks on Monday on back of gains in Asian currencies and strong upswing in the stock market. At 12 45 pm, the rupee traded at 49.67 against the dollar, stronger than Wednesday's close of 50.04.
It climbed 1 percent from the previous close in the early hour deals on Monday to touch an intraday high of 49.55. This is the strongest level that the rupee has touched since April 16, before easing back in mid-morning trade. It had even fallen 50.61, the unit thus moved within a wide range of 100 paisa in the course of the day.

Buoyed investor confidence pushed the yen and the dollar down against major global currencies as they were encouraged to buy of riskier emerging market assets on improved global outlook.

"The rupee is mainly tracking the dollar's weakness against global major's," says a dealer at ICICI Bank. "Stocks are also bullish. The rupee had fallen earlier due to profit booking as traders sold once it moved beyond the 50 level," he added.

Indian bonds fell to week lows on speculation that some investors sold securities ahead of a debt auction scheduled this week. Yields on notes due in 2019 climbed to the highest level in two weeks as the government prepares to offer Rs 12,000 crores of bonds this Friday. The yield on the 6.05 percent note due February 2019 rose seven basis points to 6.34 per cent at 12 45 pm.