The Indian rupee surged to more than a month high on Thursday, September 19, 2013 on hopes of increased capital inflows after the US Fede...
The Indian rupee surged to more than a month high on Thursday, September 19, 2013 on hopes of increased capital inflows after the US Federal Reserve`s surprise decision to keep its stimulus programme intact. Besides, dollar`s weakness against other currencies overseas, after the US Federal Reserve surprised markets by leaving its massive bond-buying programme unchanged, boosted the rupee`s sentiment. The domestic currency commenced higher by 1.57 paise at Rs 61.80 to a dollar and climbed to a high of 61.64 before easing back to a low of 62.08 so far during the day. In the spot currency market, the Indian unit was last seen trading at 61.91, stronger by almost 1.46 paise or 2.31% as compared to previous close at 63.38.
Emerging Asian currencies rallied with most Southeast Asian units up around 2 percent after the U.S. Federal Reserve surprised investors by postponing the start of reductions to its stimulus programme. Rupee closed largely steady on Wednesday as caution prevailed ahead of the U.S. Federal Reserve`s policy meeting outcome later in the day, but gains in the domestic sharemarket and other Asian currencies helped through the most part.
Local shares zoomed after the US Federal Reserve after a monetary policy review on Wednesday, 18 September 2013, unexpectedly refrained from reducing pace of monthly bond buying, saying it needs to see more evidence of improvement in the US economy. Asian shares and currencies rallied broadly on Thursday. The domestic market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 18 September 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 580.13 crore on Wednesday, 18 September 2013, as per provisional data from the stock exchanges.
The S&P BSE Sensex regained the psychological 20,000 mark. The 50-unit CNX Nifty moved past the psychological 6,000 level. At the time of writing, the S&P BSE Sensex was up 478.02 points or 2.39% to 20,440.18 while the CNX Nifty was up 165.05 points or 2.8% to 6,064.50.
Meanwhile, the dollar languished at a seven-month low against a basket of major currencies in Asia on Thursday after the Federal Reserve wrong footed many investors who had positioned for a scaling back in its massive stimulus programme. The dollar index slid 1.2 percent overnight, its biggest one-day slide in more than 2 months to levels of 80 and the euro dollar has run away to 1.35.
Source : Capital Market
