Indian shares rose more than 2% early, tracking strong global markets, as surprisingly strong US housing data Mumbai: The Indian rupee climbed on Wednesday, propelled by a more than 2% rise in domestic stocks and the dollar’s weakness against the euro. At 10:40am, the partially convertible rupee was at Rs51.45/46 per dollar, off an early high of Rs51.32 and little stronger from its previous close of Rs51.470/485. “Gains in local shares are helping and the dollar is also marginally weaker against majors. But there was some oil related dollar demand seen around 51.35,” a senior trader at a private bank said. “It’s going to be a very rangebound market, there are good two-way flows, 51.30-51.60 should be the band for the day,” he added. Indian shares rose more than 2% early, tracking strong global markets, as surprisingly strong US housing data boosted investor appetite for risk. Capital flows into and out of the stock market have been a key driver for the rupee in the last two years. Exchange data showed foreigners sold more than $500 million worth of shares this month, taking their net sales this year to $2.2 billion. They sold more than $13 billion in 2008. The euro held close to a recent one-month high on the dollar and briefly forged an 11-week peak against the yen on Wednesday, buoyed by improved investor confidence after surprisingly upbeat US and German data. Post Comments Tags - Find More Articles On: Rupee Dollar Stocks Markets BSE Sensex US READ MORE ARTICLES BY:

Source