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Rupee surges to eight month high on continued foreign fund inflows

26 Mar 2014 Evaluate

Indian rupee extending its jubilation has hit the eight months high on Wednesday morning, on the back of continued foreign fund inflows into the domestic share market. The domestic currency has also got some support with the recovery in the other emerging market currencies and strong opening of the equity markets. Meanwhile, the traders are expecting the rupee to get major resistance at 60, as the Reserve Bank of India will be looking to buy dollars to preserve export competitiveness in the background of global economic recovery taking shape. In the global markets, after showing some weakness, the euro steadied in early Asian trade on comments from European Central Bank officials. Though, there was still concern because of weaker European business data that fueled speculation the region’s economic recovery will falter.

The partially convertible currency is currently trading at 60.26, stronger by 22 paise from its previous close of 60.48 on Tuesday. The currency touched a high and low of 60.28 and 60.17 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.49 and for Euro stood at 83.67 on March 25, 2014. While, the RBI’s reference rate for the Yen stood at 59.17, the reference rate for the Great Britain Pound (GBP) stood at 99.7719. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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