Rupee Surges on Buoyant Capital Flow Outlook

Indian Currency Rupees

Mumbai: The rupee climbed up against the dollar today, buoyed up by stronger Wall Street and benefits in other Asian equity markets, which gave traders hope of an increase in foreign investments into the aggressive financial system.

Market traders also anticipate dollar supplies from three centres including Delhi, Chennai and Kolkata that were closed on Tuesday for a local holiday.

At 9:40 a.m., the partly convertible rupee stood at 40.93/94 a dollar, rising from its last closure of 40.9775/9875.

A dealer with a private bank, who anticipates the rupee to trade in a 41-40.85 range today said, “There are bunched up dollar flows slated for the centres that were closed yesterday, and that has helped the rupee early.”

Dealers took direction from Asian stocks that moved up chasing Wall Street profits on intensity in tech stocks and signs the U.S. manufacturing sector was still expanding, although at a slower pace, regardless of the impact of the current global liquidity and credit squeeze.

Dealers stated they would keep a close watch on local securities that are likely to go up for the ninth day.

Foreigners purchased $130 million of local equities this week, after being net sellers of about $1.9 billion last month. Data depicted the economy stretched by 9.3 per cent in the June quarter.