Rupee seen up after RBI steps, stock cues

MUMBAI: Rupee may rise on Wednesday, after posting its biggest single-day fall on Tuesday, supported by Reserve Bank of India's move to make rates on deposits by non-residents more attractive. After markets had shut on Tuesday, the apex bank also said it would continue to sell dollars in the local foreign exchange market either directly or through state-run banks to augment supply. Asian stocks rose and oil was up $3 a barrel on Wednesday after the Federal Reserve said it would bail out American International Group. The recovery of Asian shares could check capital outflows. The partially convertible rupee ended at 46.89/90 per dollar on Tuesday, off a trough of 46.99, which was its lowest since July 24, 2006. The rupee fell 1.8 percent from its close of 46.05/06 on Monday.
source : times of india