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Indian Rupee Stays Strong

The Indian rupee climbed higher at commencement on Tuesday, November 19, 2013 following strong inflows amid a rise in local equities and dollar sales by exporters and banks. Also, the dollar was kept in check in early Asian trade reflecting expectations that the Federal Reserve will keep its easy policy stance. The domestic currency opened stronger by 22 paise at Rs 62.18 against the US dollar and rose to a high of 62.10 before slipping back to a low of 62.33 so far during the day. In the spot currency market, the Indian unit was last seen trading at 62.31, up around 10 paise or 0.15% as compared to previous close at 62.40. Rupee notched up its biggest single-day gain in nearly seven weeks on Monday, buoyed by hopes strong foreign fund flows would support local markets as global risk assets got a boost from China`s ambitious economic reforms agenda and monetary stimulus in the United States looked set to continue.

Domestic key benchmark indices pared gains only to regain strength later. The barometer index, the S&P BSE Sensex recovered after paring gains since hitting over 1-1/2 week high. The 50-unit CNX Nifty also recovered after sinking in red since hitting over 1-1/2 week high. Asian shares edged to two-week highs on Tuesday, adding to the previous day`s hefty gains on China`s economic reform plans.

The domestic market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 18 November 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1158.57 crore on Monday, 18 November 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 42.59 points or 0.2% to 20,893.33 while the CNX Nifty was up 12.75 points or 0.21% to 6,201.75.

Meanwhile, the dollar was hobbled by expectations the U.S. Federal Reserve will keep its stimulus a little longer. The euro dollar rises to 1.35 versus the greeeback.

Source : Capital Market

Shubhlaxmi Harish

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