Rupee hits eight-month high as foreign fund inflows continue

  • Reuters, Mumbai
  • Updated: Mar 25, 2014 19:43 IST

The rupee rose to its highest level in nearly eight months on Tuesday as continued foreign fund inflows into the domestic share market helped, while a breach of a key technical resistance added to the local unit's momentum.

Traders expect the rupee to continue trading with an upward bias, helped by record high local shares with the upcoming national elections being the key focus point.

The BSE Sensex ended flat after hitting its second consecutive record high in as many sessions as blue chips such as Larsen & Toubro extended recent gains bolstered by buying from foreign institutional investors.

Foreign funds bought shares worth $240 million on Monday, taking their total purchases in 2014 to $2.6 billion. Foreign inflows into the debt market stand at a net $5.9 billion so far this year.

"The rupee is inching gradually higher to test the next resistance at 60.30 and major resistance at 60.00. As we approach the election dates, the market is betting on the formation of a stable government at the centre," said Param Sarma, director and chief executive officer at NSP Forex.

"We believe that the major resistance at 60 will hold as the central bank will be looking to buy the dollars to preserve export competitiveness in the background of global economic recovery taking shape," he added.

The partially convertible rupee closed at 60.48/49 per dollar compared with 60.77/78 on Monday. The unit rose as high as 60.43 during the session, its strongest since August 1.

Dealers said losses in other Asian currencies and demand from oil refiners limited gains in the rupee.

Most emerging Asian currencies turned weaker as the Chinese yuan retreated, failing to keep earlier gains even though hopes for economic stimulus from Beijing could improve regional sentiment.

In the offshore non-deliverable forwards, the one-month contract was at 60.92 while the three-month was at 61.59.

From Around the Web
Sponsored by Revcontent

also read

TCS, Infosys, Lupin in Forbes India’s Super 50 list; Tata Motors, HUL dropped
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome