The Indian rupee bounced back against the US Dollar to commence stronger on Monday, 26 May, 2014. The domestic currency opened up by 4 pa...
The Indian rupee bounced back against the US Dollar to commence stronger on Monday, 26 May, 2014. The domestic currency opened up by 4 paise at Rs 58.46 against the greenback and climbed to a high of 58.41 so far during the day. In the spot currency market, the Indian unit was last seen trading at 58.44, higher by 7 paise or 0.11% as compared to previous close at 58.50.
Rupee retreated from an 11-month high to fall on Friday as the central bank stepped in to temper gains being sparked by continued expectations of robust foreign inflows and a rally in domestic shares. The currency still rose 0.4 percent for the week, posting its fourth straight weekly gain and its longest winning streak in 16 months on hopes the Bharatiya Janata Party`s landslide win last week would bring a new government willing to undertake substantial economic reforms.
Domestic benchmark indices surged in early trade tracking mostly firm Asian stocks. The barometer index, the S&P BSE Sensex crossed 25,000 level. Asian stocks rose on Monday after China`s premier said policy will be fine tuned as needed to support the economy. Japanese shares rose in a steady start for Asian equities on Monday thanks to a strong session on Wall Street, and as a decisive win for Ukrainian billionaire Petro Poroshenko in the nation`s presidential election ensured a tense runoff round won`t be required.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 23 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 416.80 crore on Friday, 23 May 2014, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 309.05 points or 1.25% to 25,002.40 while the CNX Nifty was up 87.30 points or 1.18% to 7,454.40.
In the global currency market, the euro slipped early on Monday, while the other major currencies got off to a steady start as the results of a presidential election in Ukraine and votes for the European Parliament were so far greeted calmly by investors
