RTTN: Indian Rupee Strengthens To 2-week High Versus Dollar
The Indian rupee firmed against the U.S. dollar in evening deals on Tuesday, as regional shares advanced, buoyed by late recovery in Asia and a strong opening in European markets after Chinese shares rallied in the final minutes of trade on reports that the National Development and Reform Commission had approved two new infrastructure projects worth nearly 70 billion yuan.
Rebounding from a 15-month low, the benchmark index BSE Sensex ended the session up 424.06 points or 1.70 percent at 25,317.87. The broader Nifty index gained 129.45 points or 1.71 percent to 7,688.25.
Sentiment was further bolstered after Moody's Investors Service said India's current account deficit is likely to remain low supported by declining oil prices and the direction of economic recovery would remain positive despite a slow recovery in industrial output and investment.
The rupee climbed to 66.54 against the greenback, its strongest since August 25. This may be compared to an early 2-week low of 66.89. The next possible resistance for the rupee may be located around the 65.00 region. The pair finished Monday's trading at 66.81.
