Rupee hits 1-week high on continued foreign inflows

Written by Reuters | Updated: Jul 24 2014, 05:54am hrs
The rupee strengthened to its strongest level in a week and half on Wednesday as continued foreign fund inflows into the domestic share and debt markets aided while gains in other Asian units also helped.

Traders expect the rupee to remain wedged between the 59.60 and 60.50 levels in the absence of any key triggers in the near-term.

The next major event for the financial market is the RBIs monetary policy review on August 5.

The NSE index rose to a record high, gaining for a seventh straight session.

The rupee closed at 60.0925/1025 compared with 60.24/25 on Tuesday. The unit hit 60.0550 during the session strongest since July 14. Traders will continue to monitor moves in other Asian currencies for clues in the near-term. Most Asian currencies gained. But dealers say oil-related dollar demand, which is due to gather pace towards the month-end, is likely to cap broader gains in the rupee, while a stand-off between Russia and the West also continues to spark uncertainty.