Mumbai: The rupee Tuesday climbed 40 paise past the 87/$ mark to its highest level in August, as sentiment improved on expectations of faster indirect-tax reforms. Traders said a sharp decline in crude oil prices, the costliest and most frequent line item in India's import bill, also helped.An upgrade in sovereign ratings for the first time since the global financial crisis provided some much-needed ballast to the local unit, which closed Tuesday at 86.9550/$ in Mumbai. It ended Monday at 87.35/$1. "The Indian rupee outperformed among the Asian currencies due to risk-on sentiments," Dilip Parmar, senior research analyst at HDFC Securities.123396516During Tuesday's session, the rupee gained 0.45%, its steepest single-day rise since July 3. Although overseas funds were net sellers of equities through Tuesday, too, oil prices declined sharply. The Brent crude continuous contracts slipped more than a percentage point to $65.91 a barrel Tuesday evening. Crude oil, in dollar terms, has shed nearly 4% in a month."The government's focus on growth-oriented policies and a recent credit rating upgrade by a foreign agency have bolstered confidence in the Indian economy," Parmar said. "This positive momentum is further supported by the resumption of foreign fund buying, which, along with a technical pullback, has strengthened the rupee against the US dollar."
- News Source Indiatimes (Click to view full news): CLICK HERE
0 Comments:
Leave a Reply