Robust foreign capital inflows into upbeat domestic equity markets on the back of better macro fundamentals helped the rupee to gain
The rupee closed almost flat at 65.76 against the US dollar on some demand for the American currency from banks.
The domestic currency tumbled by 45 paise or 0.68 per cent in two days.
Weak equity markets too hit rupee sentiment
Pharma shares were the top gainers led by Lupin after the company received EIR from USFDA for its Goa facility
The rupee resumed higher at 61.57 per dollar against the previous close of 61.59 and dropped immediately to 61.70 on initial dollar demand from banks and importers.
In order to boost growth amid some softening of inflation, RBI earlier this month cut the key interest rate by 0.25 per cent. It is scheduled to announce its mid-quarter policy review on June 17.
Fresh dollar selling by exporters after USD was trading weak by 0.24 per cent against its major global rivals also aided the rupee recovery.
We could be on the brink if our export industries actually start losing jobs, says Shreekant Sambrani.
There are actually great similarities between the two PM
In New York, the dollar edged down against the yen for the first time in three sessions as investors weighed economic data and remarks from outgoing Federal Reserve Chairman Ben Bernanke.
The rupee appreciated by 29 paise to close at 63.38 against the greenback following fresh dollar selling by exporters.
The start-up mentors debated if they could drive the price further down, but feared an even lower price would raise doubts about its quality, as was the case with the Tata Nano, reports Amrita Singh.
Foreign capital inflows also boosted the rupee value against the dollar
He said countries should work for promoting open and inclusive cooperation for win-win outcomes.
Observing that the economic recovery was not yet fully entrenched, the RBI Governor said recovery is likely to be gradual.
On the 30-share index, Maruti was the biggest loser, shedding 3.60 per cent. Other major laggards were Yes Bank, IndusInd Bank, Tata Steel, Hero MotoCorp and NTPC -- ending up to 2.33 per cent lower.
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
The 30-share Sensex ended up 33 points at 27,241.78 and the 50-share Nifty ended up 27 points at 8,200.70.
The NSE Nifty settled the day 93.20 points or 0.88 per cent lower at 10,452.30 after shuttling between 10,612.90 and 10,434.05.
The rupee closed marginally stronger against the dollar on Wednesday.
At 12:25 PM, the barometer index, the S&P BSE Sensex was down 358 points or 1.3% at 26,368.
Shocks from Brexit could also hurt one of China's biggest export markets.
On the rupee, it expects some appreciation pressure on in the near term from greater portfolio flows.
Ongoing trade-war rhetoric between the US and China added some nervousness on the trading front coupled with extremely bullish dollar sentiment overseas.
Adequate dollar supply gave a boost to the local currency
Strong month-end demand for the US currency mainly from oil importers along with currency futures expiry related purchases predominantly weighed heavily on the forex market and haunted investor sentiment.
A weakening dollar against other currencies overseas supported the rupee.
The rupee continued to slide against the pound sterling and finished at 102.64 as against 102.25 previously.
'In my 20 years, I have never seen such high rates.'
The rupee fell sharply by 32 paise at 66.37 against the US dollar in early trade on Tuesday.
'The most important issue for Indians, the only way in which to get them quickly out of poverty, is sustained high growth.' 'If we are not doing that despite a strong government and a leader with clarity of vision and purpose, we are facing big trouble.'
Stability in currency markets was only restored from September.
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The local currency opened at 62.20 a dollar from the previous close of 61.93 and immediately touched a low of 62.29 at the interbank foreign exchange market.
Participants are eagerly waiting for the key macrodata -- IIP and CPI numbers due to be released later today.
The benchmark Sensex conquered yet another milestone of 28,000 for the first time briefly before concluding at a new closing peak of 27,915.88, a rise of 55.50 points of 0.20 per cent.
This was the second consecutive yearly outflow from such funds.
'An explanation perhaps lies in the culture of revisions that has grown deep roots in the government data collection system,' notes A K Bhattacharya.
India's likely medium-term potential growth will almost certainly be markedly lower than that experienced in pre-pandemic years, warns Shankar Acharya, former chief economic advisor to the Government of India.
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