Thursday, the Indian rupee rose to a 1 1/2-month high against the US dollar as Indian's Sensex closed above 10,000, boosted by more than expected decline in inflation.
India's inflation continued to slow in the week ended December 6, official data showed today. According to the Ministry of Commerce Industry, inflation fell to 6.84% in the 12 months to December 6 from 8% recorded in the previous week. Economists had expected the rate to slow to 7.45%. A year ago, the inflation rate was 3.84% in the corresponding week.
Bombay Stock Exchange's Sensex closed at 10,060.11, up 344.82 points or 3.55 per cent. National Stock Exchange's Nifty was at 3059.50, up 3.56 per cent or 105.15 points.
The Indian rupee edged higher to 46.8550 against the US dollar at 5:50 am ET. This set the highest point for the rupee since November 6, 2008. On the upside, 46.1250 is seen as the next target level for the Indian currency. The dollar-rupee pair closed Wednesday's North American session at 47.4750.
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