Rupee rises against dollar as funds flow into equities market
The rupee ended at 60.12 a dollar, up 0.14%, on good foreign portfolio inflow into the local equities market
Mumbai: The rupee on Tuesday ended stronger against the dollar on good foreign portfolio inflows into the local equities market.
The partially convertible currency ended at 60.12 a dollar, up 0.14% from its previous close of 60.21 a dollar. According to currency dealers, nationalized banks were seen buying the dollar on behalf of the Reserve Bank of India (RBI) while foreign banks sold the greenback.
The local currency had strengthened as much as 60.07 a dollar in the morning trade, even as Asian currencies showed a mixed trend.
At its close, the Malaysian ringgit was up 0.2%, Taiwan dollar was up 0.1%, while the Philippines peso was down 0.12% and Hong Kong dollar closed 0.1% down.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.22, down 0.06% from its previous close of 80.27.
India’s benchmark equity index, the S&P BSE Sensex, rose 1.35%, or 337.58 points, to close at 25,368.90.
The yield on India’s 10-year benchmark bond ended at 8.716%, compared with its Monday’s close of 8.78%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has gained 2.8% against the dollar, while foreign institutional investors have bought $9.87 billion from local equity markets.
Anup Roy contributed to this story.
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