MUMBAI: The rupee touched an 11-week high on Friday on the back of dollar inflows with a growing number of foreign exchange dealers and treasury officials saying that the local currency is on course to gain further in the coming weeks. The rupee rose 1.5% from Wednesday's close of 50.11 against the dollar to end the day at 49.31 to the USD, with the gain fuelled partly by exporters selling dollars after being caught on the wrong foot in terms of the direction of the currency.
Federal bond yields ended higher amid low volumes, as disappointed traders pruned positions in the absence of a debt buyback by the central bank to support a $2.6-billion bond auction, where underwriters were forced to buy some bonds. The 10-year benchmark bond yield settled at 8.35%, up 3 basis points from Wednesday. The market was closed on Thursday for a national holiday.
The Sensex rose for a sixth straight session on Friday to a 11-week high as foreign investors continued to buy local stocks on indication of a policy shift towards reviving growth, with an increase in global risk appetite also aiding sentiment. Reliance Industries and Infosys led the rise. Reliance rose 3.7%, while Infosys jumped 2.2%
