Mumbai: The Indian rupee rose on 10 April, helped by some large banks buying on behalf of corporate clients, though sales by state-run banks probably on behalf of oil firms put a lid on gains, dealers said.
At 10:11am, the partially convertible rupee was trading at 39.950/960 per dollar, stronger than the closing of 39.995/40.005 a day earlier.
“Today, we’ve seen three big foreign banks buying rupees for corporate clients, possibly stock-related inflows,” said a trader with a private bank.
“The dollar’s weakness is also pressuring the rupee up.”
The Sensex, India’s main stock indes, opened 0.23% lower, but later turned positive in morning deals.
Foreign inflows are a key driver of the rupee and foreigners bought about $470 million of shares in the three sessions to 8 April. However, they have been net sellers of nearly $3 billion in stock so far this year, a factor in the rupee’s 1.5% fall against the dollar in 2008.
The dollar sank against the Japanese yen and other Asian currencies on 10 April on expectations the US Federal Reserve may cut interest rates when it next meets on 29-30 April.