Hopes of more foreign funds on the back of sharp recovery in domestic equity market also boosted the value rupee against the dollar
The rupee ended higher by 23 paise to close at 67.25 against the US currency on selling of dollars by banks and exporters in view of weakness of dollar in the overseas market amid sharp recovery in equities.
In the overseas market, the dollar fell against the pound sterling in the late trade as voters went to the polls in a landmark referendum on whether the UK should stay in the European Union.
Hopes of more foreign funds on the back of sharp recovery in domestic equity market also boosted the value rupee against the dollar, a forex dealer said.
The rupee opened higher at 67.43 per dollar as against Wednesday’s closing level of 67.48 per dollar at the Interbank Foreign Exchange (Forex) market. It firmed up further to 67.2375 per dollar before ending at 67.25 per dollar, showing a gain of 23 paise or 0.34 per cent.
The domestic unit hovered in a range of 67.2375 and 67.44 during the day.
On Wednesday, the rupee ended steady against the dollar.
The dollar index was trading down 0.41 pct against a basket of six currencies in the late afternoon trade.
The RBI fixed the reference rate for the dollar at 67.3707 and euro at 76.3776.
In cross-currency trades, the rupee fell sharply against the pound sterling to finish at 100.20 from 99.09 on Wednesday and also drifted lower against the euro to 76.57 from 76.20.
While, the domestic currency recovered against the Japanese yen to 63.61 per 100 yens from 64.51.
At overseas, the pound advanced to a six-month high against the dollar in early Asian trade after the latest polls favoured Britain remaining in the European Union, just hours before referendum voting was due to open.
The euro also gained, while the yen weakened across the board after the latest opinion polls suggested the ‘remain’ camp has been gaining momentum again.
In forward market, premium for dollars remained under pressure due to sustained receivings from exporters.
The benchmark six-month premium for November fell to to 179-180.5 paise from 183-185 paise yesterday and far forward May 2017 contract also fell to 373-374.5 paise from 377-379 paise.
Meanwhile, the benchmark BSE Sensex rose by 236.57 points or 0.88 per cent to end at 27,002.22.
