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Rupee jumps on Chinese yuan revaluation talk

Rupee jumps on Chinese yuan revaluation talk
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First Published: Thu, Apr 08 2010. 03 06 PM IST
Updated: Thu, Apr 08 2010. 03 06 PM IST
Mumbai: The Indian rupee jumped in late afternoon trade on Thursday on market talks of a likely revaluation of the Chinese yuan, dealers said. Banks also sold dollars on expectation of the 3G telecom auction inflows scheduled on Friday.
China is very close to announcing a shift in its currency policy, the New York Times reported on Thursday. The change would involve a “small but immediate” revaluation of the yuan and would permit the yuan to fluctuate more widely, the paper said.
At 3:20pm, the partially convertible rupee was at Rs44.51/52 per dollar, after scoring a day’s high of Rs44.40 in late trade. The unit had closed at Rs44.54/55 on Wednesday.
“There is a huge amount of dumping (dollars) by banks. Banks had gone short and are now covering their position,” said a dealer at a private bank.
The rupee had moved in a band of Rs44.40-44.73 till now.
The Indian unit is seen closing around Rs44.50 level with an appreciating undertone, dealers said.
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First Published: Thu, Apr 08 2010. 03 06 PM IST
More Topics: Markets | India | Rupee | Dollar | Foreign Exchange |