There were a "decent" amount of inflows into the market, and
the broader sentiment was better, while a pullback in the dollar
index helped the rupee, said a dealer at a private bank.
Several traders pointed to the potential of MSCI-related
inflows as well as the State Bank of India's $1 billion
syndicated social loan announced on Tuesday.
"Near term prospects for the rupee are determined by flows
and the central bank's actions which are acting in opposite
directions," said Jayaram Krishnamurthy, founding partner and
chief operating officer at Almus Risk Consulting.
Hence, the local unit is likely to stay in the range of
82.60-83.00 in the near term, Krishnamurthy said, noting that
technically, only a break of either side on a daily close basis
would trigger a directional move.
The Chinese yuan rallied to 6.8880 per dollar after
data showed factory activity in February grew at its fastest
pace since April 2012, spurring hopes of a rebound in the
world's second biggest economy. Asian currencies and equities rose in response, while the
dollar index fell 0.5%. The Thai baht and the
South Korean won led gains with a 1.3% jump.
Markets now look to U.S. ISM manufacturing data due later in
the day, which will provide cues on whether the economic growth
momentum persisted in February and on the interest rate hike
path there.
(Reporting by Anushka Trivedi; Editing by Dhanya Ann Thoppil)
By Anushka Trivedi
MUMBAI, March 1 (Reuters) - The Indian rupee hit a near
three-week high against the dollar on Wednesday after a stronger
Chinese yuan sparked a rally in Asian currencies.
The rupee rose 0.20% to 82.50 per dollar, having
strengthened up to 82.37 at one point, near its 55-day moving
average of 82.3514 and at its highest level since Feb. 10.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.