rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Rupee at over 4-month high of 53.36

Rupee at over 4-month high of 53.36

Last updated on: September 25, 2012 18:30 IST

MoneyExtending its gains for the third straight session, the rupee on Tuesday gained 11 paise to hit a fresh over 18-week high of 53.36 against the US dollar on fag-end selling of the American currency by exporters.

Forex dealers said signs of increased capital inflows amid stable dollar overseas also helped the rupee rally.

The rupee opened higher at 53.38 per dollar against last close of 53.47 at the Interbank Foreign Exchange market.

But it soon fell to a low of 53.63 on dollar demand from importers, mainly oil refiners, to meet their month-end requirements and also initial hesitancy in local equities.

However, sudden dollar selling by exporters and heavy capital inflows later aided the rupee to bounce back to a high of 53.31 before settling at 53.36, a gain of 11 paise, or 0.21 per cent.

Meanwhile, the BSE benchmark Sensex today ended up by just 21.07 points, or 0.11 per cent at 18,694.41.

Foreign institutional investors pumped in $310.02 million on Monday, after injecting $458.57 million last Friday as per Sebi data.

"The rupee put up a mixed performance primarily gaining on the policy reforms such as the SEB (state electricity board) restructuring and the disinvestment sale of RCF shall aid improvement in government finances.

Rupee later reversed its intra-day losses on dollar selling by exporters," Alpari
Financial Services (India) CEO Pramit Brahmbhatt said.

The dollar index, a gauge of six major currencies, was down by 0.01 per cent, while New York crude oil was quoting below $93 a barrel in Europe today.

"The rupee started the day on a firm note but later traded on lower note after morning session as European debt concerns continued to persist with Spain is delaying the ESM bailout.

"Recent data from Germany showing a drop in the business confidence index also pressurised the currency.

"It recovered at the fag-end to close in positive," Abhishek Goenka, founder and CEO, India Forex Advisors, said.

The premium for the forward dollar closed better on fresh payments by banks and corporates.

The benchmark six-month forward dollar premium payable in February finished up at 141-1/2-143-1/2 paise from overnight close of 140-142 paise.

The premium for far-forward contracts maturing in August also inched up to 288-290 paise from 287-289 paise.

The RBI has fixed the reference rate for the US dollar at 53.5340 and for euro at 69.0295.

The rupee remained firm against the pound sterling to 86.58 from Monday's close of 86.69 and improved further to 68.99 per euro from 69.13.

It, however, declined further against the Japanese yen to 68.60 per 100 yen from previous close of 68.52.

© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.