Rupee surges, after US Fed cut
Rupee surges, after US Fed cut Indian Rupee rose on Sep. 20, 2007 after US Federal Reserve slashed its interest rate to curtail the economy from a slowdown. The cut by the US Federal Bank has boosted optimism among the investors for investing in emerging markets like India. Overseas investors are investing in Indian assets, which resulted the local bourses to cross the breach of 16,000 mark. BSE Sensex rose 0.15%, or 25.20 points, to close at 16,347.95, while the broad-based NSE Nifty gained 15.2 points, or 0.32%, to settle at 4,747.55. But Rupee appreciation is a cause of concern for the central bank. Exporters are the worst hit from the increase in momentum of Rupee. To cap the gains from the local currency moving northward, RBI bought Dollars in the forex market giving some sign of relief to exporters. However, Rupee ended at 39.89/90 a Dollar, up 0.7% from yesterday`s close of 40.20/21.
