The Indian rupee extended gains to its strongest level in nearly four weeks on Monday afternoon, boosted by the gains in the domestic sharemarket and the dollar’s losses versus major currencies.
At 1:20pm, the partially convertible rupee was at rS46.46/47 per dollar, after hitting Rs46.4550, its strongest since 11 August, and above its Friday’s close of Rs46.63/64.
The index of the dollar against six major currencies was down 0.2% and most Asian currencies were stronger against the dollar.
The dollar dipped on Monday and looked poised to test a 15-year low against the yen after failing to retain gains made after US jobs data, although caution about Japanese intervention deterred further yen buying.
Less-dire-than-expected US payrolls data last week eased market anxiety over chances of a global slowdown and boosted demand for the euro and growth-leveraged currencies.
Indian shares were trading 1.6% higher, taking cues from strong Asian markets.
One-month offshore non-deliverable forward contracts were quoted at Rs46.66, 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 both at 46.6125, with the total traded volume on the two exchanges at about $2.05 billion.
Source : http://tinyurl.com/2eygerc
