CURRENCY & COMMODITIES VIEW

 

The rupee rose 73 paise to 63.11 against the US dollar at the Interbank Foreign Exchange market.

The partially convertible rupee was at 63.11, its lowest since August 23, and 63.84/85 previous close.

The rupee rose to near three

-

week high as dealers cited corporate inflow related dollar selling.

The rupee had settled at 63.84 against the dollar yesterday and was up 140 paise over the previous day's close as fears of US military strike on Syria eased, leading to lower global oil prices.

Several dealers cite selling by a large private petrochemical company. Some dealers also cite selling related to possible front- running due to inflows towards Mylan Inc's $1.6 billion deal to acquire a unit of Strides Arcolab BSE 0.52 % Ltd.

 

COMMODITIES>>>>>

CURRENCY & COMMODITIES VIEW

RBI intervenes aggressively to support faltering rupee

The rupee recovered sharply on Wednesday as RBI aggressively sold dollars to prevent the currency from falling to a record low amid volatility in global markets over the U.S. push for limited US strikes on Syria. Traders also cited hopes that Raghuram Rajan , who takes over at the Reserve Bank of India on Wednesday, will bring a new approach to the central bank's defence of the rupee, which has so far relied on a risky strategy to drain cash and raise short- term interest rates.

RBI was seen selling dollars consistently when the rupee would approach the record low of 68.86 hit on Aug. 28

Whenever the RBI moved out of the market, we saw a sudden uptick in USD/INR and they again came in to sell.

They have been very aggressive today

COMMODITIES VIEW....

.