Rupee rises on global recovery optimism
The rupee strengthened, snapping a two-day loss, after a report showed US consumer spending rose faster than economists estimated, fueling optimism the global economic recovery is on track.
The Indian currency climbed as a gauge that tracks the dollar sank to the lowest level since November 9, signaling fewer investors favoured the relative safety of the greenback over emerging-market assets. Spending in the world's biggest economy rose 0.7% in December, beating November's 0.3% gain, data released on Monday showed.
"The rupee is mildly stronger as the dollar has weakened broadly on positive economic data," said Naveen Raghuvanshi , a Mumbai-based currency trader at Development Credit Bank . "It may remain in a small range around current levels for now."
The Indian currency advanced 0.3% to 45.7675 per dollar on Tuesday. It fell 2.6% last month, the worst performance among Asian currencies after Thailand's baht.
The Dollar Index, which tracks the greenback against six major trading partners, lost 1.6% in January and touched a 12-week low of 77.294 on Tuesday.
Offshore forwards indicate the rupee will trade at 46.56 to the dollar in three months, compared with expectations of 46.74 on Monday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
The Indian currency climbed as a gauge that tracks the dollar sank to the lowest level since November 9, signaling fewer investors favoured the relative safety of the greenback over emerging-market assets. Spending in the world's biggest economy rose 0.7% in December, beating November's 0.3% gain, data released on Monday showed.
"The rupee is mildly stronger as the dollar has weakened broadly on positive economic data," said Naveen Raghuvanshi , a Mumbai-based currency trader at Development Credit Bank . "It may remain in a small range around current levels for now."
The Indian currency advanced 0.3% to 45.7675 per dollar on Tuesday. It fell 2.6% last month, the worst performance among Asian currencies after Thailand's baht.
The Dollar Index, which tracks the greenback against six major trading partners, lost 1.6% in January and touched a 12-week low of 77.294 on Tuesday.
Offshore forwards indicate the rupee will trade at 46.56 to the dollar in three months, compared with expectations of 46.74 on Monday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
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