Currency Buzz: Rupee jumps to 2-month high

The Indian rupee recovered to a two-month high in opening trades on Tuesday on robust domestic growth, contained fiscal slippage, and portfolio-related inflows. INR opened at Rs 95.06 per dollar and hit a high of 94.79 so far during the day, its highest level since July 1st. Indian shares were however subdued on Tuesday as surging oil prices fueled worries over inflation and raised the likelihood of tighter monetary policy, with traders now pricing a 57 percent chance of a September rate hike by the Federal Reserve. The downside, however, remained capped after official data showed the Indian economy expanded more than expected in the June quarter, fueled by investment and spending. Official data showed the Indian economy expanded more than expected in the June quarter, fueled by investment and spending. GDP logged an annual growth of 7.8 percent in the April to June period, stronger than economists' forecast of 7.1 percent.

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