RTTN:Indian Rupee Jumps To 5-day High Against US Dollar
(RTTNews) - The Indian rupee advanced against the US dollar on Tuesday, bouncing back from Monday's fresh 2-month lows, as domestic equities rallied amid signs that easy monetary policy would remain in place in the U.S. for some time.
The Fed Chairman Ben Bernanke signaled on Monday that the U.S. monetary policy will remain accommodative to produce faster job growth. Bernanke's comments spurred hopes of more policy easing ahead, weakening the dollar and boosting appetite for riskier assets.
The benchmark 30-share Sensex jumped over 300 points from the day's low before paring gains and ending up 205 points or 1.2 percent at 17,257. The broader Nifty index climbed 59 points or 1.14 percent to 5,243.
The rupee touched a 5-day high of 50.5655 against the greenback, up almost 1.8 percent from yesterday's multi-month low of 51.4950. On the upside, 50.40 is seen as the next likely resistance level for the Indian currency. The pair closed Monday's deals at 51.270.
