The Indian rupee today rebounded from a six-week low after two large companies sold the US dollars raised via qualified institutional placements and local stocks advanced after two days of lackluster movement.
Overseas capital inflows have remained consistently positive, helped by India’s better economic fundamentals. FIIs have already poured in US$8.5bn into Indian equities after pumping more than US$17bn last year.
The partially-convertible Indian currency rose to 47.2650 per dollar as of 11:38 a.m. in Mumbai, paring this week’s loss to 1%. It touched a high of 47.1650 and a low of 47.2825 after opening at 47.1850.
Yesterday, the rupee touched 47.3850, the weakest level since June 7.
Offshore forward contracts indicated that the rupee will trade at 47.89 to the dollar in three months, compared with expectations for a rate of 47.99 yesterday.
Most Asian currencies also rose against the dollar while the greenback lost ground against the euro.
