Rupee jumps to 62.58, Sensex soars over 300 points
Zee Media Bureau/Rd. Alexander
Mumbai: The Indian rupee on Monday jumped by 90 paise against the US dollar to 62.58 while the BSE Sensex jumped by over 300 points to regain the 20,000-level.
The rupee strengthened to a four-week high against the dollar at the Interbank Foreign Exchange market on increased capital inflows and dollar selling by exporters.
On Friday, the rupee had settled at 63.48 against the dollar.
The rupee also gained against the dollar as the US currency weakened against overseas currencies following Lawrence Summers’ withdrawal from consideration as the US Federal Reserve chairman.
Lawrence Summers, a former top aide to President Barack Obama and Treasury secretary under President Bill Clinton, and widely considered as the one to succeed Federal Reserve Chairman Ben Bernanke, withdrew from the post after liberal pressure soured his confirmation prospects.
On the other hand, the BSE benchmark Sensex shot up by over 300 points in morning trade to regain the 20,000 mark.
The gain was supported by a spell of buying by investors after the Securities and Exchange Board of India (SEBI) allowed overseas entities to invest in government securities without any auction mechanism.
The rally in the market was led by stocks in banks, capital goods, PSUs and power sectors.
The National Stock Exchange index Nifty also rose by 81.95 points to trade at 5,932.55.
However, shares of Ranbaxy fell over 30 percent after the US Food and Drug Administration issued an import alert against the company.