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Indian rupee surges tracking Asian peers
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MUMBAI: The Indian rupee ended at day's high on Thursday, boosted by gains in Asian peers, strong capital inflows and weak dollar overseas. The partially convertible rupee ended at 46.47/48 per dollar, after moving in a wide 46.4700-46.6050 band, up 0.34 per cent from Wednesday.
Further rise in the rupee was prevented by dollar demand from some oil importers, dealers said. "Rupee is following emerging market currencies now. In the short-term, I expect the rupee to strengthen because capital flows continue to be strong into India," said Ajay Mahajan, managing director and head of financial markets and institutional banking at UBS.
So far in 2010, foreign funds have invested a net $13.5 billion in local shares, in addition to last year's record $17.5 billion investment when the rupee had risen 4.7 per cent. One-month offshore non-deliverable forward contracts were quoted at 46.59, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were at 46.5750 and 46.58 respectively and total volumes traded was $5.2 billion. -Reuters
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