Rupee soars to four-month high of 53.66 against dollar
The Indian rupee extended its rally against the US dollar to a four-month high in early trade on Monday after the government announced some long-expected reforms on Friday.
At 9:42, the rupee was at 53.77 to the dollar, off the day's high of 53.66, a level last seen on May 15. The currency is up 0.98 per cent or 53 paise from Friday’s close of 54.30. It had earlier zoomed 113 paise on Friday to a two and a half month high on heavy dollar selling after the US Federal Reserve announced another round of quantitative easing.
The dollar index, which measures the greenback against a basket of major currencies, eased 0.1 pe rcent Monday, having fallen on Friday to levels not seen since late February. The rupee closely tracks the euro, which fetched around $1.3130, up 0.1 per cent on the day but below a four-month peak of $1.3169 set on Friday. It has soared nearly 10 percent from a 25-month trough around $1.2042 plumbed in July.
Traders will closely track RBI’s monetary policy announcement expected at 11 a.m. even though the central bank is likely to continue its hawkish stance after WPI inflation rose to 7.55 per cent in August.
Source : profit.ndtv.com
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