Rupee up 20 paise at 61.39 Vs dollar

Mumbai, Oct 24:

The rupee wiped off its early losses and was trading up by 20 paise at 61.39 against the dollar at 4.11 p.m. local time due to fresh dollar selling by banks and exporters.

Persistent foreign capital inflows also boosted the rupee value against the dollar, a forex dealer said.

The rupee opened flat at 61.58 against the American unit, but quickly fell to 61.70 in the first few trades of the day. It had closed at 61.59 against the dollar on Wednesday.

Meanwhile, in New York market, the US dollar was flat to slightly higher versus most major rivals other than the yen yesterday as worries about China’s banks spurred a round of haven-related buying, strategists said.

The weakening of US jobs data has led to the belief, among market participants, that the US Fed will further delay the winding down of its $85-billion-a-month fiscal stimulus. Some of this money finds its way to the Indian shores.

The rupee has depreciated over 10 per cent against the American currency from the beginning of the year.

Since economic fundamentals remain wobbly in Asia’s third largest economy, the Indian unit is unlikely to gain substantially till the twin deficits — fiscal and current account deficits — are set right.