Surges To Near 7 Month Highs 11-Mar-2014

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images (32)The Indian rupee rose further in early trades on Tuesday, March 11, 2014 tracking strength in regional peers and as continued dollar inflows from foreign institutional investors propped up the local unit. The domestic currency opened higher by 9 paise at Rs 60.75 against the US dollar and advanced to a high of 60.60 so far during the day. In the spot currency market, the Indian unit was last seen trading at 60.64, up 20 paise or 0.33% as compared to previous close at 60.84.

Rupee rallied to its highest level in seven months on Monday as foreign investors continued to buy into both equities and debt, even as most other Asian currencies fell after surprisingly weak Chinese trade data.

Volatility ruled the roost as key benchmark indices regained positive terrain in morning trade. The barometer index, the S&P BSE Sensex, regained the psychological 22,000 mark. he market edged higher in early trade on firm Asian stocks. Asian stocks edged higher after the Bank of Japan kept monetary policy unchanged. However, uncertainty about the true state of China’s economy kept the mood brittle and commodity prices depressed.

The domestic market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 10 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 1253.65 crore on Monday, 10 March 2014, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 66.79 points or 0.3% to 22,001.62 while the CNX Nifty was up 20.75 points or 0.32% to 6,558.

In the global currency market, the dollar is barely changed against a basket of major currencies, holding steady at 79.752. And the euro trades steady against the dollar at USD 1.3877, not far from a 2-1/2-year peak of USD 1.3915 touched on Friday. The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.77, up 0.02% from the previous close of 79.76. The yen wobbles in a narrow range in early Asian trade as investors awaited the latest policy decision from the Bank Of Japan later in the session.