Rupee gains as forex markets await IIP data

The rupee gained tracking Asian forex and a steady trend in equities. However, dealers are awaiting factory output data which is due later today.

The Indian rupee opened at 54.30 per dollar versus 54.40 on Monday. At 10.20 am IST, the Indian currency was seen trading up by Rs 28 at Rs 54.27, up by 14 paise.

Meanwhile, Markets were seen trading up, the BSE was seen up 23 points. The 50-share NSE Nifty up by 2 points.

According to some experts, rupee is expected to appreciate in near term as higher inflows from foreign funds are expected to support the rupee. However, it depends on mid term monetary policy review, which is scheduled later on March 19.

The government has been worried over a a weakening rupee as it puts pressure on inflation, and makes imported goods, particularly crude oil costlier. A rising current account deficit, which has hit a historic high of 5.4 per cent is also weighing on the rupee.

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