Rupee completed its first weekly gain since May on hopes of Government spending will help to boost overall growth.
Rupee completed its first weekly gain since May on hopes of Government spending will help to boost overall growth.
The currency approached a two-week high as overseas funds bought more local shares than they sold for a fifth straight day and the Sensex jumped the most in a week. Rail Minister Mamata Banerjee today said Indian Railways, will buy new wagons and build more coaches to upgrade infrastructure and fuel economic expansion.
The rupee rose 0.5% during the current week to close at 47.89 per dollar. It gained 0.1% today. The rupee fell 1.7% last month, the worst performance among the 10 most-active currencies in Asia outside Japan.
Sensex has rallied almost 55% this year as FIIs continued buying around US$5bn more local shares than they sold.
The nation's US$1.2 trillion economy may expand around 7.75% this year amid signs of a “bottoming out” in the U.S. and harvests benefiting from monsoon rains, the finance ministry said in the annual Economic Survey released yesterday. Growth could be as little as 6.25% if there are delays in a U.S. revival, the report stated.
U.S. employers cut more jobs than economists forecast in June and the unemployment rate rose to the highest in almost 26 years. Payrolls declined by 467,000 after a revised 322,000 drop in May, according to the U.S. Labor Department. The jobless rate climbed to 9.5%, a 26-year high.
Offshore forwards contracts indicate bets the rupee will trade at 47.98 in a month, compared with expectations a week ago for 48.24. Forwards are agreements in which assets are bought and sold at current prices for future delivery.
