Rupee posts biggest single-day gain in three weeks

MUMBAI Fri Feb 22, 2013 5:45pm IST

Rupee notes of different denominations are seen in this picture illustration taken in Mumbai April 30, 2012. REUTERS/Vivek Prakash/Files

Rupee notes of different denominations are seen in this picture illustration taken in Mumbai April 30, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The rupee notched up its biggest single-day gain in three weeks on Friday boosted by inflows delayed by a strike that curtailed trading over the last couple of sessions, but investors were jittery ahead of the crucial 2013/14 budget next week.

Investors are focusing on the budget, which will be keenly watched to see how Finance Minister P. Chidambaram balances the tightrope walk between fiscal discipline and populist spending ahead of elections in 2014.

However, global risk sentiment will also be important, as the dollar surged this week on doubts about just how long the U.S. Federal Reserve will keep its quantitative easing in place.

"If the numbers are right in the budget, and seen as realistic, then we will see rupee rally below 53.60," said Moses Harding, head of asset liability management at IndusInd Bank.

The partially convertible rupee closed at 54.175/185 per dollar versus its previous close of 54.47/48. It rose 0.1 percent in the week, snapping two weeks of losses.

Dealers cited foreign fund-related dollar inflows from banks, which were bunched up as trading was thin in the last two days due to a two-day national strike, which kept most dealers at state-run banks away.

Currency markets were also closed on Tuesday for a banking holiday.

Some inflows were also related to TPG Capital's $305 million stake sale in Indian commercial vehicle financier Shriram Transport Finance Co Ltd (SRTR.NS).

Investors are gearing up for a busy week ahead, especially with the government also set to unveil its October-December economic growth data.

In the offshore non-deliverable forwards, the one-month contract was at 54.51, while the three-month was at 55.16.

In the currency futures market, the most-traded near-month dollar/rupee contract on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 54.29 with a total traded volume of $6.1 billion.

(Editing by Sunil Nair)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Election 2014

REUTERS SHOWCASE

TCS Results

TCS Results

TCS net profit rises 51.5 percent, sees stronger sales growth.  Full Article | Quote 

Election 2014

Election 2014

Promises and more promises: India’s parties pitch their visions.  Full Article | Full Coverage 

India Markets

India Markets

Sensex slumps 207 points, at 2-1/2 week closing low.  Full Article 

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Bitcoin ATM

Bitcoin ATM

China gets first bitcoin ATM, skirting bank crackdown.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage