The Indian currency hovered in the range of 64.02-64.11 during the day
Rupee lost 14 paise to end at 64.52 against US dollar yesterday after RBI decided to keep key policy rates unchanged
Showing resistance against early volatility, the rupee today surged by a hefty 20 paise to end at a fresh two-month high of 64.50 against the beleaguered dollar even as S&P kept India's credit rating unchanged. The rupee marked its best closing since September 20. It had tumbled to a low of 64.83 in early trade. 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 drifted sharply to hit a fresh intra-day low of 64.83 on immense dollar pressure before a spirited recovery in mid afternoon deals. After climbing a fresh high of 64.49 towards the tail-end trade, the local unit finally settled t 64.50, revealing a smart gain of 20 paise, or 0.31 per cent. The rupee has appreciated 31 paise last week. The RBI, meanwhile, fixed the reference rate for the dollar at 64.6948 and for the euro at 77.1421. Global rating agency Standard & Poor's on Friday kept its .
A seemingly corrective pullback in the US Dollar probably helped as well
The buoyancy reflects the country's attractiveness among global investors
The premium for dollar weakened further due to sustained receiving from exporters
The benchmark Sensex settled flat at 31,283.72, while Nifty advanced over 19 points to 9,788.60
US Federal Reserve reaffirmed its intention to hike rates in December
Registering its second biggest fall of the year, it concluded the session at 64.81
The report expects inflation to average around 4 per cent over the long term
Expectations of robust capital inflows into equities and debt largely supported the rupee gains
Strong momentum of buying in domestic equities by foreign institutional investors helps the rupee
Strengthening of the rupee is not caused by export boom
Poor countries need the help of cheap currencies to break into export markets