Rupee up 23 paise against US dollar on Budget hopes
The local unit started trading slightly better at 54.06 per dollar from last close of 54.09 and immediately touched a low of 54.07 at the Interbank Foreign Exchange (Forex) Market.
Later, it bounced back on smart rise in local stocks to a high of 53.63 before losing some ground to end at 53.86, a rise of 23 paise, or 0.43 per cent.
Forex dealers said a smart rebound in local equities and sustained fund inflows amid a weakness in the US currency overseas also aided the rupee.
"Rupee gained in line with the gains in local equities.
The Economic Survey calling for fiscal consolidation paves way for interest rate cut by RBI which will be good for the industry and indicates the Budget tomorrow to be fiscally disciplined," said N S Venkatesh, Head (Treasury), IDBI Bank.
"Also, euro strengthening against the dollar and dovish comments by US Federal Reserve's Ben Bernanke hinting at improved liquidity in the American system, which in turn will bring more funds into India aided the rupee," he added.
Meanwhile, the BSE benchmark Sensex today recovered by 137.27 points to 19,152.41. Foreign institutional investors lapped up Indian stocks worth nearly USD 20 million (Rs 106.36 crore), according to BSE provisional data.
Dhanlaxmi Bank Executive Vice-President (Treasury) Srinivasa Raghavan said: "The Survey was
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