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Rupee Surges To Two-Week High Against US Dollar: 5 Things You Should Know

The rupee on Tuesday rebounded by 22 paise to close at a two-week high of 64.89 against the US dollar

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Rupee Surges To Two-Week High Against US Dollar: 5 Things You Should Know

Rupee rose on Tuesday against US dollar

Mumbai: The rupee on Tuesday rebounded by 22 paise to close at a two-week high of 64.89 against the US dollar cashing in on positive sentiments post Moody's upgrade of India's credit rating. This is the highest closing for the domestic currency since November 6. Heavy selling in the greenback by exporters and banks as well as weakness in the dollar against other currencies overseas largely supported the rupee recovery. The local currency also benefited from a strong rally in local equities.


Five things that you should know about the surge of Indian rupee


1. Currency traders and exporters rushed to sell their receivables expecting a surge in dollar inflows from global investors in the face of Moody's decision to upgrade India's sovereign rating after a gap of 14 years. The sovereign rating upgrade comes close on the heels of a sharp improvement in country's ranking in the World Bank's ease of doing business survey.

2. Brent crude, the international benchmark, is trading a tad higher at $62.36 a barrel in early Asian trade. Earlier at the Interbank Foreign Exchange (forex) market, the rupee opened higher at 65.08 against Monday's finish of 65.11 on bouts of dollar selling. Maintaining a clear uptrend throughout the session, the home currency finally managed end at the day's highest level of 64.89, revealing a strong gain of 22 paise, or 34 per cent.

3. The rupee had settled 10 paise lower on Monday. In cross-currency trades, the rupee bounced back against the pound sterling to settle at 85.90 from 86.30 per pound and also rebounded sharply against the Euro to close at 76.06 from 76.76.

4. The local unit continued its strong momentum against the Japanese yen to conclude at 57.66 per 100 yens from 58.06.

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5. On the global front, the greenback held steady against other major currencies in cautious trade on Tuesday, amid ongoing political woes in Germany and uncertainty over a major tax reform plan in the US. The dollar index, which measures the greenback's value against a basket of six major currencies, was up at 94.03 in early trade.

With PTI inputs
 

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