Re rises to three-week high as US House passes Budget Bill

Last Updated: Wed, Jan 02, 2013 20:53 hrs

The rupee rose to the highest level in almost three weeks as US lawmakers passed a bill to avert $600 billion in automatic tax increases and spending cuts that were set to take effect from today.

Asian stocks advanced by the most in two weeks after the House of Representatives avoided higher taxes for most US workers as Republicans abandoned their effort to attach spending cuts that would have been rejected by the Senate.

The rupee advanced 0.6 per cent to 54.36 per dollar in Mumbai, according to data compiled by Bloomberg. It touched 54.2650 earlier, the strongest level since December 13. The rupee dropped 3.5 per cent last year after plunging 16 per cent in 2011.

Bonds rise
Ten-year bonds gained for a ninth day, the longest winning run since November 2009, after the government deferred a debt auction previously scheduled for this week. The finance ministry will seek to raise Rs 12,000 crore ($2.2 billion) in February instead of this week, the central bank said in a statement on Monday.

Call rate ends steady
Call money rates at the overnight market ended stable, as demand from borrowing banks matched supplies. The rate closed steady at eight per cent. It moved in a range of 8.20 per cent and 7.90 per cent.

More from Sify: