Indian Rupee: Edges Higher On Increased Dollar Sales

capital market | Mumbai |

Indian Rupee: Edges Higher On Increased Dollar Sales

The Indian rupee inched higher at commencement on Monday, 11 April 2016 and strengthened further thereafter on increased selling of the US currency by exporters and banks amid higher opening in the domestic equity market. Besides, dollar's weakness against some other currencies overseas supported the rupee. The domestic currency opened at Rs 66.45 against the dollar and climbed to a high of 66.33 so far during the day. In the spot currency market, the Indian unit was last seen trading at 66.39. Forex and money markets were closed on Friday on account of Gudi Padwa. On Thursday, the rupee had gained 19 paise to close at 66.47 a dollar on fresh selling of dollars by banks and exporters as the US currency weakened in global markets.

Domestic benchmark indices were trading near the flat line after opening with decent gains. At 9:20 IST, the barometer index, the S&P BSE Sensex was up 13.16 points or 0.05% at 24,687. The Nifty 50 index was currently up 5.45 points or 0.07% at 7,561. Capital goods and realty stocks led the gains.

In overseas stock markets, Asian stocks were mixed. US stocks closed marginally higher on Friday, 8 April 2016 with petroleum-linked stocks posting strong gains, even as worries about earnings cut into gains.

Meanwhile, the U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was last quoted at 94.22. In the week ahead, investors will be turning their attention to inflation reports from the U.S., Europe and China for any indications that central bank stimulus has helped to spur price growth. Data on first quarter Chinese growth on Friday will also be closely watched amid persistent fears over a slowdown in the world's second-largest economy.

Last week, the dollar ended slightly lower against the yen on Friday as investors shrugged off comments by Japan's finance minister aimed at weakening the currency. The dollar initially gained ground against the yen after Japan's Finance Minister Taro Aso said that rapid currency moves were undesirable and the yen's moves were one-sided, flagging a possible intervention by authorities to weaken the currency. But the dollar reversed early gains amid expectations that Japanese officials will hold off any actions to stem the yen's gains until at least after next week's G20 meetings in Washington.

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