Indian Rupee rises against US Dollar - ZENMoney

The Indian Government Bond gained drawing comfort from easing inflation and a recovery in the rupee. However, the hopes of a rate cut still remain dim at the central bank's meeting on Monday.

Rupee rose against US dollar on the back of large dollar selling by exporters in spot and forward markets along with a weaker dollar overseas. A Better than expected WPI along with revised IIP along with some expected dollar inflows and rally in domestic market supported the rupee further.

US Dollar rebounded against Euro after better than expected wholesale pricing data and producer prices. The concerns over federal reserve which may soon start withdrawing stimulus and after data showed a decline in U.S. consumer sentiment along with a fall in global markets pressurised the US dollar.

Yen rose against the US Dollar due to uncertainty whether the central banks will maintain their easy monetary policies along with a weaker global markets. The doubts over the Bank of Japan's commitment to its inflationary policies has caused some investors to exit their use of profitable carry trades in the yen.

Source : Equity Bulls

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