Rupee rises to 1-month peak; share gains boost

Rupee rises to 1-month peak; share gains boost

Mumbai: The Indian rupee rose to its higest in more than a month on Wednesday afternoon as gains in domestic shares boosted capital inflow hopes while the dollar’s weakness against major currencies also underpinned sentiment.

At 2:40pm, the partially convertible rupee was at Rs48.25/26 per dollar, its highest since 14 August and above its previous close of Rs48.65/66.

Shares rose more than 1%, helped by a rise in global markets and as higher advance tax data bolstered hopes for stronger quarterly corporate earnings.

Foreigners have bought shares worth $8.9 billion so far in 2009, after having sold more than a net $13 billion last year.

The dollar index, a gauge of the US unit’s performance versus six majors, was down 0.4%. Asian units too were trading stronger.

In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 48.4375 each, with the total traded volume on the two exchanges at about $552 million.