<p> The rupee rose to its highest level in over a month on Monday, boosted by hefty gains in domestic shares and after weaker-than-expected US jobs data eased worries about an aggressive reduction in the Federal Reserve's stimulus.<br /><br /></p>.<p>Prospects that the Fed would accelerate its so-called tapering had worried investors in emerging markets such as India.<br /><br />“A softer CPI should be great for the rupee. Going ahead, primarily the U.S. economic condition will drive rupee direction but a softer CPI will lead to better stability/appreciation and reduce chances of a sharper fall,” said Samir Lodha, managing director at QuantArt Market Solutions.<br /><br />The partially convertible rupee closed at 61.55/56 per dollar compared with 61.89/90 on Friday. It rose to 61.41 during the session, its strongest since December 11. The unit rose 0.55 percent on day, its biggest single-day gain since December 16.<br /><br />Foreign fund flows into and out of the domestic sharemarket will continue to be key for the rupee's fortunes.<br /><br />In the offshore non-deliverable forwards, the one-month contract was at 61.83, while the three-month was at 62.63.</p>
<p> The rupee rose to its highest level in over a month on Monday, boosted by hefty gains in domestic shares and after weaker-than-expected US jobs data eased worries about an aggressive reduction in the Federal Reserve's stimulus.<br /><br /></p>.<p>Prospects that the Fed would accelerate its so-called tapering had worried investors in emerging markets such as India.<br /><br />“A softer CPI should be great for the rupee. Going ahead, primarily the U.S. economic condition will drive rupee direction but a softer CPI will lead to better stability/appreciation and reduce chances of a sharper fall,” said Samir Lodha, managing director at QuantArt Market Solutions.<br /><br />The partially convertible rupee closed at 61.55/56 per dollar compared with 61.89/90 on Friday. It rose to 61.41 during the session, its strongest since December 11. The unit rose 0.55 percent on day, its biggest single-day gain since December 16.<br /><br />Foreign fund flows into and out of the domestic sharemarket will continue to be key for the rupee's fortunes.<br /><br />In the offshore non-deliverable forwards, the one-month contract was at 61.83, while the three-month was at 62.63.</p>