more-inStaging a smart recovery after Monday’s plunge, the rupee on Tuesday rebounded by 11 paise to close at 64.33 per US dollar on easing retail inflation. Forex traders remained cautious ahead of the US Federal Reserve’s policy decision on Wednesday in which it is widely expected that it will hike benchmark interest rate for the second time this year. Earlier this month, the RBI had left key interest rate unchanged as it wanted to be more sure that inflation will stay subdued. The market benchmark Sensex started lower today, but quickly rebounded to hit the day’s high of 31,260.77 after data showed retail inflation is on the way down. The benchmark six—month premium payable in November was quoted steady at 136-138 paise, while the far forward May 2018 contract moved down further to 279-281 paise from 280-282 paise on Monday.

Source: The Hindu June 13, 2017 13:18 UTC