1. Rupee closes at seven-week high; seen gaining more

Rupee closes at seven-week high; seen gaining more

The rupee on Monday closed at a seven-week high against the dollar, marking the fifth consecutive session in which it gained, as foreign institutional investors continued to sell dollars and buy into Indian equities and debt.

By: | Mumbai | Published: August 2, 2016 6:22 AM

The rupee on Monday closed at a seven-week high against the dollar, marking the fifth consecutive session in which it gained, as foreign institutional investors continued to sell dollars and buy into Indian equities and debt.

The rupee closed at 66.74 against the dollar, having risen by 0.38% against the previous close of 66.99, after touching an intraday high  of 66.70.

rupee

The last time the local currency was at this level was on June 10, when the rupee opened at 66.81 and closed at 66.76, after falling to an intraday low of 66.73.

The benchmark Sensex and Nifty indices closed flat in Monday’s trade to close at 28,003.12 and 8,636.55 respectively, and the yield on the 7.59% 2026 government bond, which is India’s 10-year benchmark bond, fell by nearly three basis points to 7.14%.
In July, FIIs net bought local equities worth $1.69 billion and debt worth $1.04 billion.

Dealers maintained that the prevalent positive sentiment is on account of hopes that the goods and services tax Bill will be passed soon in Parliament.

The Bill will be tabled in the Rajya Sabha on Wednesday, the government said on Monday. The ruling Bharatiya Janata Party has issued a directive to all its Rajya Sabha members, asking them to be present in the House for the next three days.
The weakness in the dollar post the US Federal Open Market Committee meet last week continued to support the local currency, dealers said. The US Federal Reserve on Wednesday left the benchmark policy rate unchanged at 0.2%.

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