RTTN: Indian Rupee Climbs To Near 6-week High Against Dollar
(RTTNews) - Friday in early deals, the Indian rupee soared to near a 6-week high against the U.S. dollar on the back of a rise in regional stocks. The Reserve Bank of India's interest rate hike announcement yesterday also boosted the rupee.
After pausing for breath yesterday, the Indian market extended its recent gains on Friday, with positive global cues and continued FII buying lifting sentiment. Telecom, realty, IT, auto and metal stocks are leading the rebound.
The 30-share BSE Sensex is currently trading at 19,579.00, up 0.8% or 162.83 points, while the broader Nifty is rising by 53.25 points or 0.9% to 5,882.45.
The Reserve Bank of India on Thursday hiked its key rates for the fifth time this year to contain inflation and anchor inflationary expectations amid robust economic growth.
The repo rate, the rate at which the central bank lends, was raised by 25 basis points to 6% and the reverse repo rate, the rate at which the RBI borrows from banks, by 50 basis points to 5%, with immediate effect. Economists were expecting quarter point hike in both rates.
The rupee is currently trading near a 6-week high of 45.9 against the dollar. If the Indian currency gains further, it may likely target the 45.75 level.
