Indian Rupee Heading for Weekly Gain

The Indian rupee is more likely to end this week in a positive zone against the U.S. currency as the investors expected that the companies’ good reports will attract traders and the conversion to local currency.
The India’s currency rose to its 2-week highest level today against the dollar after the report by the Infosys Technologies Ltd. showed results that exceeded the analysts’ estimate. A better than expected report of the second-largest software service provider could spur a rally on the Indian stock market next week.
If more companies report good figures for the second quarter, the rupee may get a better support as the stock prices went down this week and many investors may find them attractive to buy.
Foreign investment funds need to convert their currency (most often U.S. dollars) to the local rupees in order to buy the Indian equities. Such exchange helps strengthening the local currency against the dollar.
USD/INR rate lost 0.7 percent falling down from 43.151 to 42.845 this week. The weekly minimum was reached today at 42.717.

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