Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Online-views/  Rupee hits 2-month high as inflows rise
BackBack

Rupee hits 2-month high as inflows rise

Rupee hits 2-month high as inflows rise

Premium

Mumbai: The rupee climbed to a two-month high on Friday, supported by rising dollar inflows, gains in Asian peers and the euro’s strength.

“Capital flows have been good and non-deliverable forwards arbitrage is helping the rupee gain," said Vikas Chittiprolu, a senior forex dealer with Andhra Bank.

At 11:36am, the partially convertible rupee was at 44.3375/3400 per dollar after hitting 44.30, its highest since 3 May. It had ended at 44.425/435 on Thursday.

Foreign funds have bought shares worth $2.25 billion over 10 sessions to Wednesday, according to latest data from the Securities and Exchange Board of India, and the rupee has appreciated 1.4% over this period.

Chittiprolu said persistent bids from importers, especially oil refiners, was keeping the rupee’s gains in check and traders were awaiting US non-farms data for direction.

The euro kept a tentative grip on overnight gains in Asia cheered by the European Central Bank’s pledge to provide Portuguese banks with liquidity, but trading is likely to be subdued ahead of the highly anticipated U.S. jobs report.

The US non-farm payrolls data is due at 1230 GMT and forecasts centred on a rise of 90,000 jobs.

“The next level to watch out for the rupee is 44.30. If that breaches, then we could go to 44," said a senior trader at a private bank.

The one-month onshore forward premium was at 23.75 points from 24 points, while the three-month rose to 72.50 points from 72.75 on Thursday and the one-year was at 248 points versus 246.5.

One-month offshore non-deliverable forward contracts were quoted at 44.38, weaker than the onshore spot rate.

In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange were at 44.4650, while on the United Stock Exchange and on the MCX-SX they were at 44.4650. The total volume was at $3.05 billion.

The main stock index was trading down 0.6 percent in choppy trade.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Jul 2011, 12:35 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App