The partially-convertible currency ended the day at 46.64/65 after touching a high of 46.5750. It had opened at 46.6725 as against Monday's close of 46.8025.
The rupee advanced on Tuesday, gaining the most in two weeks, amid optimism that overseas investors will continue to pour money into Indian equities and bonds as the economy remains on a strong footing despite a worsening global outlook.
The partially-convertible currency ended the day at 46.64/65 after touching a high of 46.5750. It had opened at 46.6725 as against Monday's close of 46.8025.
The rupee pared its losses for this quarter to 0.4%, still the worst performance among Asian currencies.
The BSE Sensex finished flat at 18,048 after being as high as 18,140 and as low as 18,026 while the NSE Nifty shed 4 points to end at 5,414 after touching a high of 5,443 and a low of 5,408. It had opened at 5,422.
The Indian currency pared gains after Commerce Secretary Rahul Khullar said that India’s exports grew in July at the slowest pace in six months. Overseas shipments rose by 13.2% from a year earlier to US$16.24bn after a 30.4% gain in June, Khullar told reporters in New Delhi today.
Exports may slow in the coming months as the global economic recovery falters, he said.
In global currencies, the yen retreated from a six-week high against the euro and the dollar declined as a rebound in global stock markets revived demand for higher-yielding assets.
The yen also weakened after reports said that Japanese Prime Minister Naoto Kan and central bank Governor Masaaki Shirakawa may meet next Monday to discuss the currency’s recent gains.
The euro pared its gain after German investor confidence fell more than economists predicted. The pound fell as a report showed inflation slowed last month.
South Korea’s won strengthened the most in two weeks on speculation that Bank of Korea will allow the currency to rise to contain inflation.
The MSCI Asia Pacific Index of shares rallied from an early loss to gain for a third day, rising 0.3%. The Stoxx Europe 600 Index climbed 0.8% and futures on the Standard & Poor’s 500 Index advanced by 0.7%.
