Mumbai: The Indian rupee continued to rule firm against the American currency for the fourth consecutive week, surging by 27 paise to end the week at 58.52 per dollar on persistent selling of dollars by banks and exporters on hopes of more foreign capital inflows into equity markets on expectation of more reforms from the new government.
The rupee resumed higher at 58.54 per dollar as against the last weekend's level of 58.79 at the Interbank Foreign Exchange (Forex) Market and firmed up further to 11-month high of 58.33 per dollar before ending the week at 58.52, showing a gain 0.46 per cent. It has gained by 208 paise or 3.43 per cent during the last four weeks. It moved in a range of 58.33 and 58.87 during the week.
The Indian benchmark S&P BSE Sensex flared up by 571.61 points or 2.37 pct, while FIIs infused USD 189.45 mln in the first four days of the week. Jignesh Chaudhary, Head of Research, Veracity Broking Services said, "Rupee continued to appreciate this week also.
In last four weeks including this week, the rupee has appreciated more than 3 per cent with the help of strong local equities and FIIs inflow. Strong government always helps the nation’s economy to grow at a good rate and in these election voters of India have given clear majority to BJP to form a strong government under the leadership of Modi".
"Investors and FIIs are looking forward towards India to grow at a good pace to compete with other emerging countries. The next major support for USD/INR pair is at 58.00 levels, near to this levels RBI is expected to intervene and also importers are expected to enter in the market to take the advantage of already appreciated Rupee" he added.
