Rupee hits over 2-yr high, foreign lenders sell dollars

The Indian rupee strengthened to its highest in more than two years amid heavy selling of dollars by foreign banks, with the central bank decision to cut interest rates having only a limited impact, according to traders.

The dollar had briefly touched a 15-month low against a basket of major currencies on Tuesday, though it bounced modestly on Wednesday.

The move in the rupee was magnified as the Reserve Bank of India refrained from intervening to cap broader gains in the domestic currency, traders said, adding they were unsure why the central bank had stayed away.

TRENDING NOW

Exclusive | HAL explores advanced light helicopter, Tejas MK-1A fighter jet deals worth Rs 70,000 crore with four nations, say sources

Tata Power shares near record high after power generator joins hands with Indian Oil to set up EV charging points

Government to stick to Rs 33.61 lakh crore tax collection target in revised estimate, no case for fuel tax cut: Official

BPCL dividend: Bharat Petroleum Corp shares to trade ex-date on Tuesday

53 Chinese companies established place of business in India: Corporate affairs ministry

1,178% return in 2 years: This NBFC stock hits upper circuit for second consecutive session

Kinetic Green launches e-scooter ZULU, targets big play in 2, 3-wheeler market

Sovereign Gold Bond 2023–24: Next tranche to open next week; all you need to know

Tata Power, Indian Oil Corp tie up to deploy over 500 EV charging points across India

Nifty could see correction in December second half when FPIs go on vacation

Canara Bank, Wipro, Future Consumer, other stocks to watch out for on Tuesday

Coca Cola India forays into Alcohol segment alcoholic beverage stocks Radico Khaitan, UBL, Sula Vineyards, Som Distilleries shares rise Tilaknagar Industries stock declines

D-Street Newsmakers: Tata Power, Subros, Ashok Leyland among 10 stocks that buzzed the most on Monday

Sensex touches 70,000 for first time, Nifty scales fresh peak; What's driving the indices higher?

Centre remains committed to taming onion prices, to continue to procure bulb

The RBI typically intervenes through state-run banks by buying or selling dollars whenever the rupee moves sharply either way.

"Today, the lack of buying dollars by RBI has made the rupee fly off," said Sajal Gupta, head of forex and rates at Edelweiss Securities.

The rupee rose to as much as 63.59 per dollar, its strongest level since July 22, 2015, from its close of 64.0750 on Tuesday. It ended trade at 63.69.

Traders said the RBI decision on Wednesday to cut the repo rate had only a limited impact, given the decision had been widely expected. The central bank said any future action would depend on economic data.

The benchmark 10-year bond yield rose 2 basis points to 6.46 percent, with some traders saying they were disappointed by the RBI`s cautious tone.

"The document lacked any guidance. There is no indication of future rate cuts," said a dealer at a foreign bank.

In share markets, the broader NSE index closed down 0.33 percent, while the benchmark BSE index ended 0.30 percent lower.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)