29 June: Rupee Jumps To A 1-Week High

The Indian rupee commenced higher on Friday, June 29, 2012 tracking the euro that surged overnight against the US dollar over optimism from the EU summit.

Moreover, hopes that long-stalled reforms will pick up pace after Prime Minister Manmohan Singh asked officials to chart a revival in the economy, perked up investor confidence. The domestic currency opened higher by 21 paise at Rs 56.61 to a dollar and slipped to a low of 56.66 before rebounding to a high of 56.47 so far during the day, its highest level in a week.

Positive domestic equities also propped up the local unit. In the spot currency market, the Indian unit was last seen trading at 56.49, up around 33 paise or 0.58% as compared to previous close at 56.82.

Euro surged 1.2 percent, poised to make its biggest daily jump in 8 months after European leaders agreed on Friday to create a single supervisory body for euro zone banks and allow them to be recapitalized directly by the currency areas rescue fund without adding to government debt. Euro however halted sharp gains early in Asia today.

Asian stocks and US index futures surged after European leaders today, 29 June 2012, unveiled a plan to address Europes distressed banking sector. European Union leaders announced a plan for a single financial supervisor for the region, as part of short-term measures to help stabilize markets.

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