| Date: |
02-03-2016 |
| Subject: |
Rupee jumps 56 paise, year's biggest gain |
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MUMBAI: The rupee registered the year's biggest single-day gain of 56 paise to close at a nearly three-week high of 67.86 against the US dollar - up from its previous close of 68.42. The currency gains were in keeping with sentiment in the equities market.
The rupee strengthened as market sentiment turned positive on the back of the government decision to stick to fiscal deficit targets. The domestic currency also got support from international cues following China's monetary easing and indications that the US Federal Reserve may not hike rates as much as expected.
Dealers said that the rupee opened at 68.26 and steadily gained in intra-day trade. The RBI came in to support the dollar at around 2.30 pm but sustained sales by exporters resulted in the rupee breaching 68 against the dollar. The rupee has gained by 85 paise, or 1.2%, in three days. It hovered in a range of 67.85 to 68.36 per dollar during the day.
The domestic currency would have gained further on Tuesday had the RBI not stepped in to buy dollars. "The Budget has reversed the RBI's stance in both the forex and bond markets. Only last week, the central bank was selling dollars and buying back bonds," said a dealer. He added that last week the central bank bought heavily to prevent the rupee from hitting 70 against the dollar. The rupee had recorded an all-time low of 68.85 in August 2013.
Source : timesofindia.indiatimes.com
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