Rupee headed for 51 levels; hits 6-month high

Updated: Friday, October 5, 2012, 11:03 [IST]

INR

83.278

The rupee hit a fresh six-month high on sustained selling in the dollar as exporters preferred to cover their positions. The rupee was trading at 51.59 to the dollar at 10.40 am IST, jumping 15 paise over Wednesday's close.

The recent reforms announced by the government has sparked a sharp rally in the rupee, which has been the best performing Asian currency in the last few weeks.

The government on Thursday cleared foreign direct investment in the pension sector, while increasing the cap of FDI in the insurance sector.

Analysts believe that this would be a good for the Indian rupee, as it would lead to lead to fresh dollar inflows into the economy. However, the FDI move is likely to need clearance from parliament and the UPS lacks a majority in the Lok Sabha and the Rajya Sabha.

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