Wednesday 11 September 2013

Rupee nears 63/dollar; lifts Sensex, Nifty

The Indian rupee neared 63 per dollar mark on Wednesday and is on track for its fifth consecutive day of gains. The sharp gain in the rupee lifted sentiments in stock markets too, with the BSE Sensex bouncing back into the green after earlier falling by over 200 points.

The rupee hit a high of 63.07 per dollar, up over 1 per cent as against Tuesday's close of 63.84. This is the fourth straight day when the partially convertible rupee has seen gains of over 1 per cent.

The rupee recovered from the day's low at 64.20 per dollar and traded at 63.23 as of 3.10 p.m.

Dealers told Reuters that corporate inflow related selling of dollars supported the rupee today. Several dealers cited selling by a large private petrochemical company.

A convincing break of 63.30 means 63 will be next support, analysts said. The rupee has gained over 6 per cent since the lows hit last Wednesday. That day Raghuram Rajan took over as the new Reserve Bank governor and announced a series of measures to defend the currency.

Stock markets were choppy today after a four-day rally. The BSE traded up 29 points at 20,026, while the Nifty traded 26 points higher at 5,922.

Traders attributed the correction to profit taking after a four-day rally saw a complete turnaround in sentiments. The BSE Sensex has around 10 per cent or around 1,800 points in the previous four trading sessions starting Wednesday. Markets were closed on Monday.

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