LM:Rupee rises to 61.48 per dollar as US ends shutdown
Mumbai: Indian rupee strengthened, in line with other Asian currencies, after the US Senate came into agreement over temporarily raising the debt ceiling of that country.
At 2pm, rupee was trading at 61.4750 a dollar, up from its previous close of 61.8450.
The partially convertible currency opened at 61.5550 a dollar and traded in the range of 61.3875 and 61.72.
Since January this year, the rupee has weakened 10.53% and has lost the second most after Japanese yen in Asia.
The dollar index, which measures the US currency’s strength against major global currencies, was trading at 79.919, down 0.69% from the previous close of 80.47.
“Rupee’s basic weakness has been tackled, but at the same time India’s growth forecasts have been downgraded by the International Monetary Fund and the World Bank. So that’s a concern,” said Satyajit Kanjilal, chief executive officer of Forexserve Risk Management Consultant’s Pvt. Ltd.
“It is fairly certain now that the quantitative easing tapering will be delayed, fuelling the risk taking sentiment. Inflows should come to India and this should strengthen the rupee,” said Kanjilal.
BSE’s benchmark Sensex fell 0.14% to 20,517.85 points.
The yield on the 10-year bond was at 8.585%, down from its previous close of 8.668%.
The interbank call money rate was at 9.05%.
