Rupee Strengthens on Record Capital Inflows

The Indian rupee gained today as the investors’ confidence in the currency was highest since May 2009 after the unprecedented $25 billion of the capital inflows into the nation’s equities.

The global funds pumped $15.8 billion into the stock in 2010, 54 percent higher than in the same period last year, and $9.2 billion into the debt, more than the total amount for the previous eight years. The analysts say that outlook for India’s growth and stocks is very positive. The stronger currency should support the central bank in its attempts to contain the inflation.

USD/INR fell from the opening level of 45.705 to 45.690 as of 10:19 GMT today after it bounced from the intraday low of 45.350 to the intraday high of 45.835.

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