Mumbai, India (BBN) – The rupee was trading strong at 64.35 as the benchmark BSE Sensex ended higher by over 200 points since investors remained bullish on the outcome of a possible victory for the ruling Bharatiya Janata Party in Gujarat Assembly elections.
Apart from selling of the American currency by exporters, forex dealers said the dollar’s weakness against other currencies overseas supported the rupee’s upmove, reports The Hindu Business Line.
The domestic unit opened flat at 64.45 at the Interbank Foreign Exchange market today. It hovered in a range of 64.46 and 64.31 before quoting at 64.35, up 10 paise at 4.35 pm local time.
On Friday, the rupee had gained 12 paise to end at 64.45 on fresh selling of the American currency amid unwinding of long dollar bets ahead of release of key US macro data.
The dollar edged lower on Monday on disappointing US wages data that analysts said could weigh on the pace of interest rate hikes from the Federal Reserve next year.
The dollar dipped 0.1 per cent to 93.801 against a basket of major currencies, pulling away from a two-week high hit on Friday.