Rupee up 18 paise against dollar on strong local equities
Exporters and some banks preferred to reduce their dollar position in view of uncertainty in the currency market, forex dealers said.
By PTI | Updated:
MUMBAI: Snapping two days of losses, the rupee gained 18 paise on Wednesday to close the day at 44.52/53 against the US currency in line with a smart recovery in local equities despite fresh capital outflow.
At the Interbank Foreign Exchange (Forex) market, the local unit opened strong at 44.57/58. Later, it bounced back to settle the day at 44.52/53, a net rise of 0.40 per cent.
Exporters and some banks preferred to reduce their dollar position in view of uncertainty in the currency market, forex dealers said. Fall in the US currency overseas aided the rupee rise, they added.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, "Rupee traded strong for the day, taking cues from global markets where dollar traded weak against major currencies. Indian equity markets also ended up by one per cent which strengthened the rupee further."
"Recovery in equity market aided the rupee rise. Yesterday's Chinese data had indicated robust GDP growth, which helped to lift the commodity prices and the European shares. All these factors encouraged the rupee to appreciate today," said India Forex Advisors CEO Abhishek Goenka.
The dollar index, consisting of six major currencies, was down by about 0.3 per cent and New York crude oil was trading near USD 97.5 a barrel in the European market today.
Meanwhile, The Bombay Stock Exchange benchmark Sensex today finished higher by over 184 points or 1.0 per cent.
Foreign Institutional Investors (FIIs), after pumping in USD 2.68 billion since June 23, sold shares worth USD 205.28 billion yesterday as per SEBI data.
The rupee premium for the forward dollar also recouped on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in December finished up at 127-129 paise from Tuesday's close of 124-1/2-126-1/2 paise. Far-forward contracts maturing in June also concluded higher at 227-229 paise from 223-225 paise previously.
The RBI has fixed the reference rate for the dollar at Rs 44.5880 and the euro at Rs 62.3994.
The rupee turned negative against the pound sterling to settle at Rs 70.99/71.01 from Tuesday's close of Rs 70.72/74 and also dropped to Rs 62.63/65 per euro from Rs 62.20/22 previously. It closed a tad lower against the Japanese yen at Rs 56.16/18 per 100 yen from last close of Rs 56.15/17.
At the Interbank Foreign Exchange (Forex) market, the local unit opened strong at 44.57/58. Later, it bounced back to settle the day at 44.52/53, a net rise of 0.40 per cent.
Exporters and some banks preferred to reduce their dollar position in view of uncertainty in the currency market, forex dealers said. Fall in the US currency overseas aided the rupee rise, they added.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, "Rupee traded strong for the day, taking cues from global markets where dollar traded weak against major currencies. Indian equity markets also ended up by one per cent which strengthened the rupee further."
"Recovery in equity market aided the rupee rise. Yesterday's Chinese data had indicated robust GDP growth, which helped to lift the commodity prices and the European shares. All these factors encouraged the rupee to appreciate today," said India Forex Advisors CEO Abhishek Goenka.
The dollar index, consisting of six major currencies, was down by about 0.3 per cent and New York crude oil was trading near USD 97.5 a barrel in the European market today.
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Meanwhile, The Bombay Stock Exchange benchmark Sensex today finished higher by over 184 points or 1.0 per cent.
Foreign Institutional Investors (FIIs), after pumping in USD 2.68 billion since June 23, sold shares worth USD 205.28 billion yesterday as per SEBI data.
The rupee premium for the forward dollar also recouped on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in December finished up at 127-129 paise from Tuesday's close of 124-1/2-126-1/2 paise. Far-forward contracts maturing in June also concluded higher at 227-229 paise from 223-225 paise previously.
The RBI has fixed the reference rate for the dollar at Rs 44.5880 and the euro at Rs 62.3994.
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The rupee turned negative against the pound sterling to settle at Rs 70.99/71.01 from Tuesday's close of Rs 70.72/74 and also dropped to Rs 62.63/65 per euro from Rs 62.20/22 previously. It closed a tad lower against the Japanese yen at Rs 56.16/18 per 100 yen from last close of Rs 56.15/17.
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