The Indian rupee rose on Wednesday, recovering from 15-month lows on the back of a 5.4 percent surge in the stock market, but high crude prices may continue to exert downward pressure on the local unit.
The partially convertible rupee ended at 43.17/18 per dollar, off a low of 43.39 and 0.4 percent stronger than Tuesday's close of 43.34/36, trimming its losses for the year to 8.7 percent. On Tuesday, it had weakened as far as 43.50, its lowest since early April 2007.
"Once the stock market started rallying, banks who were sitting on long-dollar positions started unwinding them," the chief dealer with a state-run bank said. "The central bank does not seem to be trying to defend any particular level on the rupee now, so it will be directly related to the stock movement and oil prices."
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