Rupee Ends At Fresh 2-Month High Of 64.50/USD: 5 Things To Know

The rupee on Monday surged by 20 paise to end at a fresh two-month high of 64.50 against the US dollar despite global ratings agency S&P keeping India's credit rating unchanged. The rupee on Monday marked its best closing since September 20. It had fallen to a low of 64.83 in early trade. Positive vibes created by the global rating agencies on India predominantly injected a new enthusiasm for forex market sentiment, a trader commented. Foreign investors infused over $ 2.6 billion in the country's capital markets this month so far.
 

Here are 5 things you must know about rupee's surge today:

1) Improving macro fundamentals and growing expectations of more reforms that will boost long-term economic growth and attract healthy foreign inflows are helping rupee to maintain a strong upbeat trend, said a trader.

2) In early trade, the rupee resumed almost flat with negative bias at 64.71 from last weekend level of 64.70 in knee-jerk reaction to the S&P rating outcome. But, later it drifted sharply to hit a fresh intra-day low of 64.83 on immense dollar pressure before a spirited recovery in mid-afternoon deals.

3) After climbing a fresh high of 64.49 towards the tail-end trade, the local unit finally settled at 64.50, revealing a smart gain of 20 paise, or 0.31 per cent.

4) The rupee has appreciated 31 paise last week.

5) On the global front, the US dollar reversed the Asian recovery and fell back in the negative territory, hovering at around six-week lows against other major currencies in quiet trade largely impacted by subdued US macro data. (With PTI Inputs)