Indian Rupee Rises Against U.S. Dollar

The Indian rupee rose against the U.S. dollar on Monday, following

in the Asian giant. The Indian economy, along with other BRIC economies, has been recovering rapidly from the financial crisis that struck down many developed nation's economies. Now it seems that interest rates will have to go up in order to fight off inflation. On the other side, the developed nations are still struggling to put their recovery on a firm foothold. Following disappointing jobs market data, it does not seem the Fed will start raising interest rates just yet. As a result, the rupee strengthened against the U.S. dollar. At around 12:30 pm GMT, the greenback traded around 44.7650, or 0.13% below Friday's close. At the same time, the rupee added some value against the euro as well. The euro is trading around 65.3692, or 0.36% lower than Friday's close. The Socialist government in Portugal was soundly defeated in Sunday's parliamentary elections. Some investors might fear that the new center-right government, that is likely to be formed, will be unwilling to implement steep and painful cuts, needed to bring the country's budget deficit within the EU guidelines, in order to maintain its popularity rating. Traders who believe the Indian economy will continue to push forward, which would add additional steam to the country's currency, will be interested in the Market Vectors Indian Rupee/USD ETN

and the WisdomTree Dreyfus Indian Rupee Fund

.