Rupee gains on hopes of shares rise!

The Indian rupee gained early on Wednesday boosted by hopes for a rise in local shares which could help bring in more foreign funds but the dollar's moves versus major units ahead of the Fed meet outcome would be closely eyed.

The partially convertible rupee was at 44.31/32 per dollar , stronger than its close of 44.37/38 on Tuesday. The euro struggled on  to push higher above $1.4000 against the U.S. dollar, which remained on the back foot as the Federal Reserve looked set to provide more stimulus to spur a flagging recovery.

Dealers, however, said some leftover refund of Coal India IPO oversubscription could limit sharp gains in the rupee. Almost $3.5 billion share sale was 15 times covered, with foreign investors being heavy buyers.

Source : ET