Entries Tagged 'Forex' ↓

The rupee closed strong as sentiment for rupee positive as local stocks gained on Fed’s discount rate cut on Friday. The spot rupee closed higher at Rs 41.05 against its previous close of Rs 41.29.

Rupee fell 1%  on Thursday to its lowest level in nearly two months, on worries about capital outflows as stock markets across Asia fell on global credit squeeze concerns.

At 9:35 am, the partially convertible rupee was at 41.15/16 per dollar - its weakest since late June, and compared with 40.75/76 at the previous close.

With investors reducing exposure to risky assets across the region, emerging market currencies such as the rupee may be the hardest hit as capital inflows have been a key support for the local currency, analysts said.

Rupee may drop on Tuesday on the back of weak Asian stocks, but exporters may grab the opportunity to encash their dollars and limit the rupee’s decline.

The partially convertible rupee ended at 40.625/635 per dollar on Monday, off the day’s high of 40.53 but a tad stronger than Friday’s close of 40.635/645, which was its weakest close in over a month.

It had hit a nine-year high of 40.20 last month, with foreign buying of local stocks providing support.

Foreign portfolio holdings stand at more than $9.6 billion this year despite sales since late July, compared with an inflow of $7.9 billion in 2006 as reported on Reuters.