Rupee Gains Tracking Shares Rise, Dollar Watched.

MUMBAI: Rupee gained on Monday morning tracking gains in the domestic sharemarket and the dollar's weakness versus major currencies overseas and other Asian peers.

At 9:20 am, the partially convertible rupee was at 45.75/76 per dollar, above 45.835/845 at close on Friday.

Shares rose 0.5 percent in early trade on Monday, with outsourcers leading the rise, after Asian stocks erased early losses.

The market had however, opened down 0.8 percent. The US dollar edged lower in hesitant Asian trade on Monday ahead of a busy week of data and a Federal Reserve meeting where further quantitative easing is likely to be discussed if not implemented.

The index of the dollar against six majors was down 0.2 percent and is seen helping the rupee. The Reserve Bank of India last Thursday hiked key rates more than expected to fight inflation and signalled that a tightening cycle that has seen five rate hikes this year may be nearing an end.

Still, India has one or two interest rate increases in store for the rest of the fiscal year that ends in March, a Reuters poll conducted after the policy showed.

Source : economictimes.indiatimes.com