The Indian rupee edged higher by 16 paise to over two-week high of 59.53 against the US dollar at the Interbank Foreign Exchange market today on increased selling of the US currency by exporters amid capital inflows.
Forex dealers said a higher opening in the domestic equity market and strengthening of the euro against the US dollar overseas also supported the rupee.
The rupee appreciated by 38 paise — its biggest single-day rise in seven weeks — to close at 58.69 in yesterday’s trade on optimism that the budget next week would have strong measures to put finances and the economy back on track.
Meanwhile, the benchmark BSE Sensex climbed to yet another record-high of 25,924.25, rising 83.04 points, or 0.32 per cent, in early trade today.
Indian rupee seen opening weaker against US dollar on overseas inflows, shares
(Reuters) Indian rupee is expected to fall from its previous close of 59.6875/6975 against US dollar, on continued foreign institutional flows, strength in domestic shares and lack of central bank intervention.
Overseas investors bought Indian shares worth $216.13 million on Wednesday, provisional exchange data shows.
India’s Nifty futures on Singapore stock exchange rise 0.4 percent after the benchmark indexes hit record highs on Wednesday.
The pair currently seen trading at 59.55/57 in the offshore spot non-deliverable forwards traded in Singapore. The pair is seen trading in a range of 59.20 to 59.60 during the session.
Asian stocks hovered at a three-year high and the dollar rose early on Thursday after robust jobs data fuelled hopes that the U.S. nonfarm payrolls report would point to momentum building in the economy.
However, most Asian currencies like won, rupiah ease against the dollar. See for a snapshot.
The U.S. dollar clung onto modest gains early on Thursday, having risen broadly on the back of a report that showed solid hiring in the U.S. private sector.