Rupee back below 50 level

The Indian rupee gained 37 paise and was seen trading at 49.93 against the dollar at 10.15 am IST. The sharp recovery in the rupee was led by strong domestic equities and dollar inflows from foreign institutional investors.

In fact, the possibility of a Greece swap debt deal going through improved sentiments in the currency markets and saw the rupee appreciating strongly.

Dealers believe that the rupee is expected to see some recovery and a decisive trend would be seen only after the Union Budget 2012-2013 to be delivered by Finance Minister Pranab Mukherjee next Friday.

A pragmatic and growth oriented budget will see renewed FII inflows which should help a further recovery of the rupee.

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