Indian rupee sees best week in eight months; hits 11-month high

May 16 2014, 17:35 IST
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Shares reverse most gains; prompt profit taking in rupee Shares reverse most gains; prompt profit taking in rupee
SummaryShares reverse most gains; prompt profit taking in rupee

The Indian rupee strengthened to its highest level in 11 months on Friday and posted its best weekly gain in eight months as the Bharatiya Janata Party and its allies headed towards an overwhelming majority in the country's elections, sending Indian shares to record highs.

The rupee however failed to retain most gains made during the session on the back of profit-taking in domestic shares and sporadic dollar buying intervention by the central bank.

The partially convertible rupee closed at 58.79/80 per dollar after hitting 58.62, its strongest since June 19 and 0.85 percent above its previous close of 59.29/30.

For the week, the rupee rose 2.1 percent, its third consecutive weekly gain and also its biggest weekly rise since the week to Sept. 13.

Traders expect the rupee to hold in a 58.50 to 59.50 per dollar range for the next week.

In the offshore non-deliverable forwards, the one-month contract was at 59.09, while the three-month was at 59.73.

For market wrap see

FACTORS TO WATCH

* Subdued US ylds hurts dlr, euro lifted from recent lows

* India election result lifts INR; Asia FX mostly dips

* Shares fall for third day on growth worry

* Foreign institutional investor flows

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