| Date: |
15-09-2010 |
| Subject: |
Indian rupee rises to month high |
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The Indian rupee has strengthened against the dollar and touched it’s highest in a month on Monday backed by positive data relating to factory output and increasing risk appetite among investors.
The partially convertible rupee was at 46.29/30 per dollar after it touched 46.2650, which is its highest since last month, on the Interbank Foreign Exchange. The rupee had opened 20 paise higher as compared to Thursday's close. The market remained closed on Friday on the occasion of Eid Ul Fitr.
Forex dealers expressed that gain in euro Asian currencies also contributed to the strong performance by rupee. Most asian currencies were trading higher against the dollar. The index of dollar against a basket of six major currencies was down 0.5 percent.
The Bombay Stock Exchange index Sensex rose 287.69 points to 19,087.35. The index has crossed the 19000 mark for the first time since January 2008. Foreign fund flows increased into the domestic market increased after the positive data about factory data boosted confidence.
The industrial output in the country grew much faster then expectations in July due to rise in capital goods production. This could make the Reserve Bank of India (RBI) to consider tightening the rates to control inflation.
Source : topnews.com.sg
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