P R E S E N T E D B Y –

Y A S H A S I N G H

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RUPEE ENDS AT 59.91, HITS 8-MONTH HIGH

INTRODUCTION

Rupee posted its biggest quarterly gain since the Septemberquarter of 2012.

As heavy foreign buying of equities and debt boosted the localunit.

But, further gains could be capped by a cautious central bank,analysts warned.

The rupee also breached the 60-per-dollar mark for thefirst time in eight months.

CONTENT

Foreign funds have purchased a net $3.7 billion in equitiesfrom the start of 2014 until March 27 while in debt the netinflows stand at $5.8 billion.

Dealers said the RBI was seen buying dollars intermittentlyover the week to slow the rupee's slide as also to shore upits foreign exchange reserves.

Risen to $298.64 billion as on March 21, its highest sinceDecember 2011.

Some traders speculated that the central bank has likely tobought nearly $2-$3 billion over this week in its attempt toslow the rupee's rally.

CONCLUSION

The partially convertible rupee closed at 59.91/92 perdollar compared to 60.31/32 on Thursday.

The rupee rose as high as 59.68, its strongest since July 30.

The rupee rose 3.15 percent in the March quarter, its bestquarter since the 4.96 percent rise in the September quarterof 2012.

ANALYSIS

There have been good inflows seen in the market.

The near-term outlook depends on the central bank'smonetary policy.

Traders will continue to monitor foreign fund flows in thenear-term for cues.