Mumbai: The rupee climbed on Friday, as investors bought the local unit in anticipation of capital flows after a hefty rate cut by the US Federal Reserve, with gains on Wall Street and other Asian indices further boosting sentiment.
At 9:10 a.m., the partially convertible rupee was at 39.35/36 per dollar, moving up from the previous close of 39.38/39. It has hovered in a broad 39.34-39.48 band for most of the week.
The US Federal Reserve cut rates by a half-percentage point on Wednesday as part of an ongoing effort to halt a sharp slowdown in the world’s largest economy, a move which could attract investment flows into India.
Asian stock markets rose on Friday after one of their worst months on record as concerns eased about the outlook for top bond insurers that have been hit by the US subprime mortgage crisis and credit-related losses.