Rupee may rise on stocks, dollar weakness

Rupee may rise on stocks, dollar weakness

Mumbai: The Indian rupee may rise towards its highest in over nine years on Monday on expectations of foreign buying of local stocks and after the dollar plumbed new lows against the euro and a basket of currencies.

The partially convertible rupee ended at 39.8450/8500 per dollar on Friday, slipping from a close of 39.71/72 on Thursday, when it had hit a high of 39.62 in early trade -- its strongest since April 1998.

India’s benchmark share index rose to a record high for the eighth straight session on Friday. Data shows foreign funds bought $2.8 billion in the seven days to last Thursday.

Traders said the central bank has been acting to cap the rupee’s rapid ascent. The market widely believes the Reserve Bank of India will make a concerted effort to see the rupee does not appreciate past 39.60 in the near term.