The Indian rupee hit a five-week high and snapped a four-day losing streak on Wednesday as risk was back in favour after Ukraine and Russia agreed on a ‘permanent ceasefire’ helping local shares hit record highs yet again.
The dollar sales by Japanese banks come on the back of the Indian Prime Minister’s first major foreign trip to Japan, from where he returned earlier in the day.
The euro climbed against almost every other major currency after the ceasefire news, which offers some comfort to the euro zone economy that has borne the brunt of the impact of the conflict.
Traders said there was, however, good resistance for the rupee at around 60.35-40 levels with state-run banks jumping in to buy the US greenback.
via India Times