Rupee up against dollar on the back of Sensex rise
Cutting short a two-day losing steak, the Indian rupee on Friday ended at 49.40/42 against the dollar, up 37 paise, as local stocks rallied smartly amid sustained capital inflows into the equity.business Updated: May 15, 2009 18:50 IST
Cutting short a two-day losing steak, the Indian rupee on Friday ended at 49.40/42 against the dollar, up 37 paise, as local stocks rallied smartly amid sustained capital inflows into the equity.
The Interbank Foreign Exchange (forex) market witnessed active trade during the day with the domestic currency moving in a range of 49.38 and 49.68 after resuming firm at 49.60/62 a dollar from its previous close of 49.77/78 a dollar.
Forex dealers said the rupee drew support mainly from a turnaround in equity markets, which is expected to remain bullish for a short term with an increasing flow of portfolio investments.
They said the absence of any major dollar demand from importers and hopes of early revival in economic growth also bolstered rupee sentiment.
Foreign institutional investors have pumped in nearly $1,940 million into equity so far in May and expect to step up investment after the election results.
There was a massive pull-out out by FIIs in the past one year as the US mortgage crisis hit the global economies.
The Indian benchmark Sensex jumped by a whopping 300.51 points or 2.53 per cent on Friday. Asian indices to closed in positive territory.