RTTN:Indian Rupee Rebounds From New Multi-year Low Against Dollar
(RTTNews) - The Indian rupee that fell beyond the 50.30 level against the US dollar on Friday for the first time since April 2009 erased some of its losses on Monday as domestic equities advanced on encouraging economic data from China and Japan. However, the gains were trimmed in the afternoon on increasing dollar-demand from oil importers.
The Indian markets rose but ended off their day's highs, with underlying sentiment remaining cautious ahead of Reserve Bank of India's policy review slated for tomorrow and holidays on Wednesday and Thursday to celebrate Diwali. Stocks also pared early gains due to the F&O expiry of the October series contracts scheduled on Tuesday.
With a rally in Asian stocks lending support, the benchmark 30-share Sensex rose to a high of 17,105 in early trading before paring gains and ending up 153 points or 0.92 percent at 16,939 while the broader Nifty index rose 48 points or 0.96 percent to 5,098.
The rupee rebounded to as high as 49.73 against the US dollar in the morning session of the local trade before retesting the 50 level again in the afternoon. However, the domestic unit managed to recapture some of its gains shortly and closed higher around 49.7650 level at the end of the session. Next upside target levels for the rupee are seen at 49.50 in the near-term and 49.0 in a broader view.
