Rupee continues to exhibit firm trend; gains 19 paise

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, June 7, 2012, 11:21 [IST]

The rupee continued its smart recovery in trade today on the back of buoyant equity markets. The rupee gained 19 paise to trade at 55.18 against the dollar at 11.10 am IST.

Strong global equity markets have over the last few days sparked a strong rally in currencies including the euro and the rupee. Increasing hopes of a stimulus in Europe and the US have ensured a global rally in currencies against the greenback.

The last few weeks have seen the rupee fall sharply and hit a low of 56.40 against the dollar, largely fuelled by India's weakening fundamentals. A return to risk aversion had further accentuated the fall.

However, the smart rally over the last few days in equities has enabled recovery of the rupee. Analysts believe that the rupee movement will depend on developments in the global markets, particularly the outcome of the elections in Greece.

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