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Indian Rupee near 1-week high on stocks gains
MUMBAI - The rupee rose to its strongest level in nearly a week on Wednesday as a higher start to local sharemarket raised expectations of foreigners bringing in more funds and as a broadly weaker dollar also cheered.
The dollar was on the defensive on Wednesday and the yen was on the backfoot against higher-yielding currencies as rising stocks and commodity markets encouraged a pick-up in risk-taking.
Almost all Asian units were higher against the dollar. For a snapshot see
At 10:40 a.m. (0510 GMT), the partially convertible rupee was at 46.22/23 per dollar, off an early 46.1375 which was its highest since Nov. 26. It had closed at 46.31/32 on Tuesday.
"Rupee has gained in line with other Asian units and the stocks are also higher currently, they would be watched today for direction," a senior dealer with a private bank said, predicting a range of 46.05-46.30 for the day.
The rupee had hit at a one-month high of 46 per dollar in mid-November.
Local shares were up more than 0.5 in early deals, led by banks and auto stocks, as this week's strong GDP data and robust November auto sales kept investor sentiment upbeat.
The rupee is 13 percent above a record low of 52.2 hit in early March, helped by foreign portfolio flows of $15.4 billion into Indian equities this year.
One-month offshore non-deliverable forward contracts were quoting at 46.16/26, marginally stronger than the onshore spot rate.
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