Mumbai: The Indian rupee on Monday strengthened against the dollar, in line with other Asian currencies after the US Federal Reserve chairperson candidate Janet Yellen said she will continue the $85 billion a month asset-purchase programme.
BSE’s benchmark Sensex rose 318.43 points to 20,717.85.
At 2.15 pm, the rupee was trading at 62.5363 a dollar, up 0.93% from its previous close of 63.12.
Since January, the rupee has lost 12.06% and has lost the third most after the Indonesian rupiah and the Japanese yen in Asia.
Yellen on Friday confirmed that she would maintain the current stimulus while downplaying the possibility that policy is inflating asset bubble.
Markets will keep an eye on minutes of the Fed’s 29-30 October meeting due on Wednesday and a string of speeches from Fed officials including chairman Ben Bernanke, who is due to speak on Tuesday.
India’s finance minister P. Chidambaram pledged on Thursday to meet the country’s fiscal and current account deficit targets, as fears of the US Federal Reserve reducing its stimulus fuel concern over India’s vulnerability to foreign sell-offs.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.761, down 0.11% from the previous close of 80.849.
The yield on the 10-year bond was at 9.025%, up from previous close of 9.02%.
