The Indian rupee appreciated by 0.22 percent on Monday, helped by a weak trend in the dollar overseas, sparked by security concerns and last week's disappointing US economic data.
A slowing in corporate demand with the passing of the end of the month and good response to a top technology share offering from domestic and foreign investors also lifted sentiment.
The rupee closed at 46.3350 34.50 per dollar, off an early trough of 46.4700 and Friday's 46.4350 45.50.
"The dollar is under pressure against major currencies and that has triggered exporter sales," said a trader at a state-run bank. "Expectations of inflows towards the Tata Consultancy Services IPO have also boosted sentiment."
The dollar fell overseas after warnings of possible al Qaeda attacks and weaker-than-expected April-June gross domestic product data suggested the US recovery may not yet be self-sustaining.
The rupee has gained a quarter of a percentage point since Friday, halving losses made over the preceding two days, when corporate demand peaked at the month-end and the dollar rallied overseas, while capital inflows thinned.
Comments
Comments are closed.