Rupee strengthens as street hopes for FDI nod in multi-brand retail

The rupee rose sharply against the dollar on Wednesday as investors hope for the Parliament giving a nod to Foreign Direct Investment in multi-brand retail amid sustained selling of the US currency.

At 1:30 PM, the rupee was trading at Rs 54.48 against the dollar compared with previous close of Rs 54.68. “Sentiments are positive due to expectation of the Parliament passing the FDI in multi-brand retail. However, there are also dollar demand from oil importers which is putting slight pressure,” said Akhil Thomas, assistant manager (forex), Federal Bank.

The rupee will appreciate further if the FDI is cleared today. “It may touch Rs 54.35 against the dollar if the nod is given by the Parliament,” said S Srinivasaraghavan, executive vice president and head- treasury of Dhanlaxmi Bank.

For the rest of the day dealers expected the rupee to trade in the range of Rs 54.35-54.60 per dollar. The intra-day trading range so far was Rs 54.45-54.63 per dollar.