Rupee at one week high on Fed easing hopes

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 Rupee at one week high on Fed easing hopes
Hopes of easing raised by the Federal Reserve in its minutes of meeting saw the rupee gain, tracking strong gains in the euro.

The rupee gained almost 0.50% to trade at 5.22 against its Wednesday's close of 55.50. Trading however was thin, as forex dealing was affected by the ongoing banking strike.

Dealers says that the rupee would continue to exhibit a more steady trend and may not gain substantially, as crude prices have been rising significantly, which would put pressure on the rupee. Brent crude has rallied in the last few from around the $90 levels to the current levels of $116. India imports 70% of its crude requirements and rising crude would put pressure on the rupee.

Meanwhile, equity markets were trading higher and foreign fund flows have been steady. Foreign fund flows help the rupee to a large extent.

Read more about: currency
Story first published: Thursday, August 23, 2012, 10:16 [IST]
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