The rupee hit an 11-week closing high today at 44.78 per dollar on account of global dollar weakness coupled with a buoyant domestic stock market. | |
| The rupee opened today with a gap of 20 paise today in early trade from yesterday's close of 45.04 taking a cue from the Asian currencies' rally versus the dollar. |
| |
| Traders said the rupee was also buoyed by expectations that foreign fund purchases of Indian stocks would remain robust in 2006. |
| |
| Data showed that the funds invested $104.5 million in shares on Monday, after record buys of $10.7 billion in 2005. |
| |
| They said the dollar looked bearish vis-à-vis other global currencies as the minutes of the last Federal Open Markets Committee (FOMC) meeting hinted that the US rate hikes may have neared an end. |
| |
| The rupee was pulled off the intra-day peak of 44.76 as the Reserve Bank of India was conscious of any sharp volatility in the Indian currency. Traders expect the rupee to test the 44.50 level tomorrow if the Japanese currency continues to gain against the dollar. |
| |
| The US Fed raised the interest rates in its December meeting for the 13th consecutive time by 25 basis points to 4.25 per cent. |
| |
| It, however, said "some further measured policy firming is likely to be needed", which the market has read as a signal that there will be no major rate hikes in the near future. |
| |
|
| |
