Rupee posts biggest gain in 9 months

Rupee posts biggest gain in 9 months
The rupee witnessed a strong positive session on Friday and closed at 59.39 levels, up by 80 paise, which is its biggest single-day gain in last nine months.

During the day the dollar-rupee pair made a high of 60.01 levels and a low of 59.20 levels.
Forex dealers attributed the gain to dollar selling by exporters. Also, the new circular announced by the central bank helped rupee to appreciate against the US dollar. The
RBI stated that foreign institutional investors (FIIs) hedging on behalf of their clients will need their consent as this will help in reducing volatility in the rupee as speculation will be checked by the apex bank.

Forex traders said that the day's rupee gain may indicate strong fund inflows in the near term on hopes that US Federal Reserve will not begin tapering monetary stimulus soon.

Commenting on the domestic currency movement, India Forex Advisors' founder & CEO Abhishek Goenka said: “The rupee has been the worst performer among Asian currencies in the April- June quarter. However, talking about today’s session, it was a strong positive day for the rupee. The recent CAD figures along with yesterday’s RBI norms on “currency bets by the FIIs” have contributed to the appreciation.  Technically, it looks to be in correction mode and likely to appreciate next week.”

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