LM:Rupee closes at seven-week high of 61.44 per dollar
Mumbai: The rupee rose on Friday to the highest level since 14 August, reversing its early losses, on a dollar sell-off by banks and companies.
Strengthening of major Asian currencies and momentum in the local stock market, too, acted as supporting elements for the currency’s rise.
The rupee closed at 61.44 per dollar, up 0.5% from the previous close of 61.74. The unit opened at 61.875 per dollar and touched a high and a low of 61.2637 and 61.9412, respectively.
Since January, the rupee has weakened 10.49% and lost the third most among Asian currencies during that period after the Indonesian rupiah and Japanese yen.
Expectations of an improvement in the country’s economic fundamentals too favoured the unit.
“Expectations of improvement in the current account and funding are materially important for the rupee,” analysts at Morgan Stanley, including Hong Kong-based Geoffrey Kendrick, wrote in a research report on Thursday. “We are tactically constructive on the rupee.”
The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.925, up 0.02% from the previous close of 79.749.
The 30-share bellwether index of BSE, Sensex, rose 0.07%, or 13.88 points, to 19,915.95, while the National Stock Exchange’s broader 50-share index, the Nifty, was nearly unchanged at 5,907.30 points.
The yield on India’s 10-year benchmark bond rose to 8.623% from the previous close of 8.641%.
The interbank call rate stood at 7.25%, down 23.28% against the previous close of 9.45%.
