Indian rupee rising towards 9-yr high

Indian rupee rising towards 9-yr high


Mumbai: The Indian rupee is all set to rise towards a nine-year high of 39.85 per dollar at the start of the week, spurred by inflows into the stock market, but the central bank could step in to stall the currency’s climb.

* Foreign funds moved more than $1 billion into Indian shares over two days, after a sharp US rate cut last week sparked interest in emerging market assets. The rupee has appreciated nearly 1.5% in the last three sessions.

* Reserve Bank of India Governor Yaga Venugopal Reddy has said that the US rate cut was a “relevant input" for India’s central bank, but domestic factors still outweighed global ones.

* The partially convertible rupee ended at 39.90/91 per dollar at the end of last week, after hovering near 39.85 for almost the entire day -- its highest since May 1998. On 20 September, it had ended at 39.89/90.