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Rupee snaps two-day fall, rises 40 paise at 1-week high

Downbeat factors like sluggish Indian stock markets, fresh capital outflows amid firm dollar overseas could not able to stem the rupee rise, a forex dealer said.

twitter-logoPTI | January 7, 2015 | Updated 18:16 IST
Rupee snaps two-day fall, rises 40 paise at 1-week high
(Photo: Reuters)

Contrary to most of the negative developments, the rupee bounced back after two days of fall and appreciated by 40 paise to close at one-week high of 63.17 against the Greenback on fresh dollar selling by exporters and some banks.

Downbeat factors like sluggish Indian stock markets, fresh capital outflows amid firm dollar overseas could not able to stem the rupee rise, a forex dealer said.

The rupee commenced better at 63.51 a dollar from last close of 63.57 but fell back to the day's low of 63.56 on some weakness in local equities amid strong dollar overseas on hopes of early rise in key interest rates to be likely announced in today's Fed's release of minutes of the Federal Open Market Committee meeting held on December 16 and 17, 2014.

It later rebounded sharply to a high of 63.15 on fresh dollar selling by exporters and some banks before settling at 63.17, a smart rise of 40 paise or 0.63 per cent.

In last two days, it had dropped by 28 paise or 0.44 per cent.

The benchmark S&P BSE Sensex, after crashing by 855 points or 3.07 pct on Tuesday, declined further by 78.64 points or 0.29 per cent on Wednesday while FPIs pulled out $242.04 mln on Tuesday, as per Sebi data.

The dollar index was up by 0.20 per cent against its major global rivals.

Mr. Pramit Brahmbhatt, Veracity Group CEO said,"Rupee appreciated over half percent today, as depreciated rupee attracted exporters and some banks which helped Rupee to gain and trade strong for the day against elevated dollar. Local equities closed on a weak note which dented the rupee appreciation. The trading range for the Spot rupee is expected to be within 62.80 to 63.50." .

Meanwhile, premia softened further on sustained receipts by exporters. The benchmark six-month premium payable in June eased to 21.5-223.5 paise from 222.5-224.5 paise yesterday.

Premium on forward contracts maturing in December also declined to 424-426 paise from 426.5-428.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 63.4495 and for Euro at 75.2765.

The rupee shot up further to 95.53 against the pound from 96.57 previously while recovered smartly to 74.76 per euro from 75.61.

It also recouped to 53.02 per 100 Japanese yen from 53.40 on Tuesday.

INTERESTING READ:Which way will the rupee go in 2015?

 

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