| Date: |
02-05-2013 |
| Subject: |
Indian rupee jumps to 2-month high |
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Mumbai: The Indian rupee rose to 53.70/71 per dollar versus its close of 53.80/81 on Tuesday. The domestic currency jumped to as high as 53.6650 in opening deals, its highest since 28 February.
Financial markets were closed on Wednesday for a regional holiday.
Traders said the cut in withholding tax on Indian bonds to 5% from 20% is continuing to boost sentiment for the rupee.
The government had cut tax rates for foreign investors on interest income from investments in government and corporate debt, hoping to attract more funding to bridge its current account deficit and polish its reformist credentials.
Traders expect 53.60 levels to be supported during the day with a broad range of 53.50 to 54.00 until the central bank’s policy on Friday where it is widely expected to cut rates by at least 25 basis points. One basis point is one-hundredth of a percentage point.
Source : livemint.com
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