INR Strengthens by 25 Paise against USD in Early Trading
As hopes of a fresh inflow of capital into equity on back of firming trends across Asian markets increased, the Indian Rupee in early trading today strengthened by 25 paise against the US Dollar, to trade at a new high of Rs. 46.39. A better-than-expected economic expansion of the Indian economy in the September quarter, as well as the Dollar's loss against other currencies, also helped fuel the Rupee's strength against it.
For the July-September quarter for the current year, India's economy grew by an yearly rate of 7.9%, much faster than experts had expected on back of a hike in manufacturing and Government stimulus spending.
At around 12.45 pm, local time, the INR was at 46.41/42 a Dollar, which although was lower than the peak it hit with 46.3450, the figure was still stronger than its Friday close of 46.64/65.
On Monday, the Dollar fell against many major currencies, as opposed to the very sharp gains it made last week, after Dubai reported crumbling finances and a debt ridden economy.
Experts are of the opinion that going by the current trends, the Rupee will maintain its strength and gain more in the coming times.