Rupee rises to two-week high ahead of RBI review next week

MUMBAI Fri Mar 15, 2013 5:47pm IST

An employee uses checks a rupee note at a cash counter inside a bank in Mumbai June 21, 2010. REUTERS/Rupak de Chowdhuri/Files

An employee uses checks a rupee note at a cash counter inside a bank in Mumbai June 21, 2010.

Credit: Reuters/Rupak de Chowdhuri/Files

Related Topics

Stocks

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

MUMBAI (Reuters) - The rupee rose to a two-week high on Friday, notching up a second consecutive week of gains, helped by inflows tied to a domestic share sale and by a weaker dollar after strong U.S. data raised chances of an early retreat from monetary easing.

The government was selling a 5 percent stake in state-run National Aluminium Co Ltd to raise at least 5.1 billion rupees.

The rupee also benefited as the dollar weakened globally after strong U.S. economic data raised the prospect the U.S. Federal Reserve may retreat earlier from its monetary easing programme.

Still, investors are widely looking ahead at the Reserve Bank of India's policy review on Tuesday amid expectations that the central bank will cut interest rates by 25 basis points in a bid to support economic growth.

"Corporate selling in the morning and gains in the euro have helped the rupee despite stocks turning negative," said Naveen Raghuvanshi, associate vice president at Development Credit Bank.

"If there is a rate cut on Tuesday, equities may gain and the rupee may rise to 53.70-53.75 levels."

The partially convertible rupee closed at 54.02/03 per dollar versus its previous close of 54.355/365. It rose to 53.97 in the session, the highest level since February 28.

The rupee gained 0.6 percent on the day, its biggest daily rise since January 30. For the week, it rose 0.5 percent.

Broader gains were capped after a Standard & Poor's analyst said the slowdown in India's growth was less supportive for the country's sovereign credit ratings.

S&P rated India at "BBB-minus", one notch above junk, and cut its outlook to "negative" from "stable" last year, denoting a one-in-three possibility of a ratings downgrade.

In the offshore non-deliverable forwards, the one-month contract was at 54.44, while the three-month was at 55.02.

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 54.19 with a total traded volume of $5.1 billion.

(Editing by Subhranshu Sahu)

FILED UNDER:

SAARC Summit

REUTERS SHOWCASE

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

Reuters Poll

Reuters Poll

GDP growth to slow to 5.1 pct, but no rate cut yet  Full Article 

Oil Prices Fall

Oil Prices Fall

Oil at four-year low as OPEC production cut looks unlikely  Full Article 

Hughes Dies

Hughes Dies

Australia batsman Hughes passes away aged 25  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Google in Europe

Google in Europe

Insight - Behind Google's Europe woes, American accents  Full Article 

India-focused Funds

India-focused Funds

India-focused hedge funds up over 40 pct YTD - HFR  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Land Disputes

Land Disputes

Disputes over land for industry on the rise in India, angering locals - charities  Full Article 

Reuters India Mobile

Reuters India Mobile

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