Rupee Rises Against The Dollar

The dollar demand, a muted trend in the Indian markets and foreign fund outflows saw the rupee at a more than eight-month low on Tuesday. Tuesday saw the domestic unit opening at 82.80 and settling at 82.91 registering a fall of 16, only to rise by 10 paise to 82.81 on Wednesday.

This is a gain from the earlier eight-month low although the pressure of outflow of foreign fund and weak equity markets remained. The weight of crude oil prices can also be seen. The weakening of the dollar among major the rival currencies is also in the background of the slight gain in the domestic unit.

Caution can be seen in trading trends, as the data to US inflation, UK’s GDP and domestic monetary policy decisions are to be announced soon.