Rupee in the grip of reforms frenzy; breaches 52 mark

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, October 4, 2012, 10:03 [IST]

The rupee strengthened above the 52 mark against the dollar for the first time this year, on hopes that further reform initiatives would strengthen the economy and the currency.

The rupee was trading at 51.92 to the dollar, a rise of 24 paise over Wednesday's close. The rupee is expected to strengthen on the hopes that there could be a sharp increase in dollar flows following the government's opening up of FDI in the pension sector.

The Union cabinet is to meet today to take a decision on increasing the cap of FDI in the insurance sector and opening up of FDI in the pension sector. The hopes are these FDI measures could bring in a lot of foreign money, thus helping to strengthen the rupee.

Oil prices too have cooled off, which will ensure lesser demand for dollars for and would help the rupee further.

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