Rupee shores up on gains in local bourses
Rupee shores up on gains in local bourses Indian Rupee gained momentum on September 25, as the local bourses zoomed into positive zone and touched a high of 16,915.91 in the opening trades. The BSE Sensex rose 0.32%, or 53.71 points, to close at 16,899.54, while the broad-based NSE Nifty gained 6.65 points, or 0.13%, to settle at 4,938.85. The CNX Nifty closed near the 5,000 mark.
The local currency surged to a nine year high, as inflow of capital from overseas through FIIs, mutual funds, investors flooded the equity market. Investment was done on high-yielding Indian assets.
On the other hand, Reserve Bank of India on concerns of liquidity in the financial system, as well as appreciation of Rupee has made a proposal to the center on outflow of investment by the local investors.
Besides that sentiments of the investors were also influenced by the key data going to be released on home sales and consumer confidence. Traders speculate a weak performance on key indicators of US economy.
Indian Rupee consequently ended up at 39.735/745 a Dollar as against Monday`s close of 39.770/775.
