Asian stocks to lead the way to year's end, Fed seen pulling back - Reuters Poll. Full Article
Confused while buying stocks? Get buy, sell or hold recommendations from VantageTrade. Full Coverage
Rupee rallies to over one-week high; best week in 1-1/2 month
MUMBAI (Reuters) - The rupee rose to its highest in more than a week after gaining for a third consecutive session on Friday, helped by dollar sales by custodian banks and gains in the euro.
The rupee gained 1.1 percent for the week, posting its best weekly gain since the week ended on January 18 as part of a powerful global risk rally, although U.S. monthly employment data due later in the day will be keenly watched.
At home, investors are expected to shift their attention to the industrial output data on Tuesday and inflation data on Thursday, as the reports will come ahead of the Reserve Bank of India's policy review on March 19.
The RBI last cut interest rates in January, but expectations are growing for another easing move given the slowdown in economic growth.
"Rupee should hover between 54 to 54.40 next week, especially if data comes in largely in line with expectations," said N. S. Venkatesh, treasurer at IDBI Bank.
"If factory growth is not too good, rate cut bets will go up and bring in more inflows. But I do not expect rupee to rise above 54 next week as importers will step in there," he added.
The partially convertible rupee closed at 54.2850/2950 per dollar versus its previous close of 54.56/57. The rupee rose to as high as 54.27 during the day, its highest since February 28.
The rupee's gains came as the BSE Sensex rose to its highest close in about a month as rate cut hopes boosted lenders. (Read full story here)
Traders also cited good inflows related to Power Grid Corporation of India's (PGRD.NS) 19.90 billion rupees bond issue, while India raised $56.84 million by selling some of its shares in state-run Rashtriya Chemicals and Fertilizers Ltd (RCF) (RSTC.NS).
In the offshore non-deliverable forwards, the one-month contract was at 54.69 while the three-month was at 55.30.
In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 54.54 with a total traded volume of $4.24 billion.
(Editing by Rafael Nam)
- Tweet this
- Share this
- Digg this