Rupee to rise on euro gains, firm shares

The rupee should rise on Friday, taking cues from overnight gains in the euro and expectations the dollar will weaken in the weeks ahead.

Firmer Asian stock markets will also spur hopes for a revival in foreign fund inflows, traders said.

The euro jumped to near four-month highs of USD 1.3976 on Thursday after the European Central Bank signalled an interest rate hike was likely in April.

At 0245 GMT, the index of the dollar against six major currencies was up 0.03% at 76.508 points. But compared with 76.640 when the rupee closed on Thursday, it is down.

The MSCI index of Asian shares ex-Japan was up 1.1%, and the Nifty India stock futures traded in Singapore were up 0.7%.

On Thursday, the partially convertible rupee weakened 0.2% to 45.035/045 per dollar from 44.945/955 at the previous close.