Rupee up as Sensex marches ahead
Rupee up as Sensex marches ahead Indian Rupee gained momentum as Sensex scaled new highs on Fed Reserve`s decision to cut interest rates. Optimism spread in the emerging markets with US Fed Reserve cut on interest rates by 50 basis points to 4.75%. Discount rate was also reduced by 50 basis points from 5.25%. The local currency moved up against the greenback on speculation that the Indian bourses will witness huge inflow of capital in the coming weeks. Investors are expected to park their capital in the Indian assets.The BSE Sensex rose 4.17%, or 653.63 points, to close at 16,322.75. While the broad-based NSE Nifty gained 180.95 points, or 3.98%, to settle at 4727.15. To halt the momentum of Rupee, apex bank intervened by purchasing Dollars to prevent exporters from incurring losses. However, Indian Rupee closed up at 40.20/21 a Dollar as against Tuesday`s close o f 40.48/49 on firm local bourses.
