Mumbai: The rupee strengthened on Wednesday on hopes for more foreign fund inflows as risk aversion was seen easing globally. Gains in other regional currencies also helped.
At 10:20 am, the partially convertible rupee was at 48.31/32 per dollar, 0.2% stronger than its Tuesday’s close of 48.42/43.
“Markets are quiet globally, stocks would be crucial in providing direction to the currency. 48.20 is a level we have to watch out for,” a senior dealer with a state-run bank said.
Indian shares climbed more than 1% early, tailing firmer Asian peers and a slew of corporate results would set the tone for the session.
Foreigners have bought a net $1.4 billion worth of local stocks so far in July, taking net purchases in 2009 to almost $6.4 billion and helping the rupee pull back from a record low of 52.2 in early March.
Most Asian currencies were stronger versus the dollar.
One-month offshore non-deliverable forward contracts traded in Singapore were quoting at 48.35/45, marginally weaker than the onshore spot rate.
Source : Livemint