Indian Rupee strengthens against US dolars hitting 2 week high

Indian Rupee continued its currency appreciation against US dollar third day in a row as it galloped 42 paise up to end at 54 level  for the first time in three weeks,.

The main reasons for this optimistic phenomenon despite getting hammered against the US dollar for the last few weeks are :

•      Euro (Currency of Euro Zone) strengthening against US $ - Euro hit a 10 day high of $ 1.2601 against US $.

•     Sustained FII’s (Foreign Institutional Investors) inflows into the Indian economy.In today’s stock trading only ,cumulative shares worth Rs 675 crores was invested into Indian capital markets by FII.

•     China cutting its  benchmark lending rate by a quarter percentage point to 6.31 percent for the first time since 2008 to support growth in its cooling economy, the world's second-largest.

•  Federal Reserve (US ‘s  Central Bank) proposed  stimulus package to aid industrial & employment growth in US Economy  plagued by stymied economic growth & low employment opportunities  since catastrophic 2008 recession.

In the last three trading sessions, the rupee has gained 71 paise , represented by BSE Sensex(30  High –Cap Indian Companies)which rose  over 600 points with today’s gains at  195 points .   

RBI intervention at this stage is ruled out as Global markets are rallying stimulated by China’s rate cut ,proposed US Fed stimulus package and stable crude oil prices & this positive sentiment is expected to cheer the markets this week.