Mumbai: The rupee climbed on Wednesday as prospect of further interest rate cuts by the US Federal Reserve weighed on the dollar, after US data showed further signs of weakness in the world’s biggest economy.
At 9:05 am the rupee was at 39.81/82 per dollar, moving up from the previous finish of 39.905/915. It fell to a five-month low of 40.25 last week.
The dollar sank to a record low against the euro on Wednesday, breaking the psychologically important $1.50 level, while Asian stocks rose for a third day as a $15 billion share buyback plan by IBM boosted investor confidence.
Capital inflows into the stock market have been a key driver for the local unit in recent months. Foreigners have bought more than $1 billion of stocks so far this month after selling about $4.3 billion in January.