Rupee recovers from one-week low on positve market cues

The rupee rose in early morning trades on Wednesday, recovering from the one-week low reached in the previous session, lifted by gains in domestic equities and Asian currencies.

At 9:25 a.m., the partially convertible rupee was at 49.15/16 per dollar, stronger than 49.29/30 on Tuesday. The rupee had dropped to 49.36, its weakest since Oct. 12 in the last session.

[caption id=“attachment_111299” align=“alignleft” width=“380” caption=“Traders forecast the rupee to move in a 49.10 to 49.40 range in the day.Reuters”]  [/caption]

The 30-share BSE index was up 0.91 percent at 16901.12 points, with 28 of its components advancing.

Asian shares were higher, but gains were capped by a cut to Spain’s sovereign credit rating from Moody’s Investors Service that kept investors’ risk appetite in check.

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Traders forecast the rupee to move in a 49.10 to 49.40 range in the day.

The euro steadied on Wednesday after a downgrade of Spain’s debt rating took away some of its gains made on a report that France and Germany have reached a deal to bolster the euro zone’s bailout fund, with sentiment still extremely fragile.

The euro was trading at $1.3794, compared with $1.3699 when the rupee closed on Tuesday. The index of the dollar against six major currencies was at 76.901 points, sharply below 77.314 on Tuesday.

Reuters