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Rupee breaks three-session rally, falls 11 paise

Firm dollar overseas and capital outflows, however, capped the rupee rise to some extent, a forex dealer said.

twitter-logo PTI   Mumbai     Last Updated: May 28, 2014  | 19:04 IST
Rupee down 18 paise to 59.22 against dollar
Photo: Reuters

The Indian rupee broke its three-day of losing string and closed up by 11 paise at 58.93 against the USD following late dollar selling by exporters amid stable local equities.

Firm dollar overseas and capital outflows, however, capped the rupee rise to some extent, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 59.11 a dollar from previous close of 59.04 and dropped further to a low of 59.22.

Later, it recovered and rose to a high of 58.81 before settling at 58.93, denoting a rise of 11 paise or 0.19 pct. In last straight three sessions, it had fallen by 57 paise or 0.97 pct.

The benchmark S&P BSE Sensex, after gyrating in and out of positive terrain, closed a tad higher by 6.58 points or 0.03 pct while FIIs sold shares worth $37.83 mn on Tuesday, as per Sebi data.

The dollar index, an indicator of six major global rivals, was up by 0.15 per cent.

Mr. Pramit Brahmbhatt, Veracity Group CEO said,"Today Rupee traded weak in the first session as dollar demand from oil importers helped dollar to trade strong but as the day progressed it recovered and eventually appreciated during the day as local equities managed to close in green after trading weak for the day. The trading range for the Spot USD/INR pair is expected to be within 58.50 to 59.50."

Meanwhile, premium for forward dollar eased further on sustained receipts by exporters.

The benchmark six-month premium payable in October moved down to 203.5-205.5 paise from last close of 205.5-207.5 paise and far-forward contracts maturing in April, 2015 also declined to 429-431 paise from 432.5-434.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 59.0770 and for the euro at 80.5300.

The rupee recovered against the pound to 98.67 from 99.34 previously and also rebounded to 80.18 per euro from 80.52.

The rupee too bounced back to 57.80 per 100 Japanese yen from 57.94.

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