Rupee stays strong after flat July IIP data

The rupee stayed strong at 55.2625/2675 versus its previous close of 55.34/35 on Wednesday after IIP numbers disappointed analysts with a flat 0.1 per cent growth in July from the year-ago period, against estimates of a 0.5 per cent rise.

The softer-than-expected data also failed to have much impact on markets.

Instead, the USD/INR pair is being pressured by rising domestic stocks and as euro hits four-month high on media reports that Spain's Prime Minister was considering asking for help from the ECB bond-buying programme.

The dollar was also weighed down by expectations of more US monetary easing and a warning from Moody's that it could cut the credit rating of the US.

Traders are awaiting the German court ruling on the legality of the euro zone bailout plan for cues on the global risk sentiment.

Copyright: Thomson Reuters 2012