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Rupee rises as stock gains breed optimism

Rupee rises as stock gains breed optimism
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First Published: Thu, Aug 23 2007. 12 53 AM IST
Updated: Thu, Aug 23 2007. 12 53 AM IST
New Delhi: The rupee rose as stock gains fuelled optimism overseas investors will return to buy local shares at a cheaper price following a 10% plunge in the benchmark index from its July record.
The rupee climbed 0.4% to 40.89 against the dollar at close of trading, according to data compiled by Bloomberg.
The Bombay Stock Exchange’s benchmark index, Sensex, rebounded 1.9% on Wednesday following its worst week in five months.
“The rupee is moving in tandem with stocks,” said Paresh Nayar, chief of bonds and currency trading at Development Credit Bank Ltd.
Ten-year bonds rose for a third day on a decline in oil prices that is expected to slow inflation. Bond yields fell to the lowest in two weeks.
Nearly three-quarters of India’s energy needs come from foreign resources.
Anil Varma contributed to this story
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First Published: Thu, Aug 23 2007. 12 53 AM IST