Strong gains for the rupee continues

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Strong gains for the rupee continues
The rupee continued its strong gains of Friday, despite weak equity markets. The currency was trading at 55.42 against the dollar, up 12 paise at 10.15 am IST.

Analysts believe the rupee's strong gains despite weak equity markets is on account of the fact that the beginning of the month sees far lesser demand for the dollar.

Also, they believe that the Reserve Bank of India has been intervening in the markets by selling dollars to add to stability of the rupee. The rupee it may be recalled had plunged to a lifetime low of 56.40 against the dollar last week on heavy demand for the US currency.

Weakening Indian fundamentals, particularly the fiscal deficit and current account deficit are among the prime reasons for a fall in the rupee.

Meanwhile, the Indian stock markets lost ground today in line with global peers. At 10.20 am IST, the BSE Sensex was down more than 127 points.

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