Friday, July 8, 2011

Rupee hits 2-month high as inflows rise

Rupee hits 2-month high as inflows rise
"Capital flows have been good and non-deliverable forwards arbitrage is helping the rupee gain", said Vikas Chittiprolu, a Senior Forex Dealer with Andhra Bank.The above statement has been released by the bank official post-noticing that, on Friday, the rupee climbed to a two-month high and that too was supported by rising dollar inflows, which further lead to gains in Asian peers and the euro's strength.

According to the reports, on Friday at 11:36 a. m. (0606 GMT), the partially convertible rupee that ended at 44.425/435 on Thursday, climbed to 44.3375/3400 per dollar after hitting 44.30, which is its highest figure since May 3 .In context to same, Securities and Exchange Board of India released their latest data which showed that the climb in rupee has further resulted into foreign funds bringing in shares worth $2.25 billion over 10 sessions to Wednesday and also, the rupee has appreciated 1.4% over this period.

Chittiprolu also talked about the reasons helping the rupee gain, in his statement and said that persistent bids from importers especially from oil refiners lent a big hand in keeping the rupee's gains in check. Also, he added that the traders were awaiting U. S. non-farms data for direction.

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