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Rupee up 18 paise, ends at 53.80 vs US dollar

The rupee on Wednesday staged a smart recovery after falling to a six-week low initially to close with an 18 paise gain at 53.80 on sustained dollar sales by exporters in view of weak US currency in overseas markets.

BT Online Bureau | October 31, 2012 | Updated 18:37 IST

The rupee on Wednesday staged a smart recovery after falling to a six-week low initially to close with an 18 paise gain at 53.80 on sustained dollar sales by exporters in view of weak US currency in overseas markets.

At the Interbank Foreign Exchange (Forex) market the local unit resumed slightly better at 53.96 a dollar from yesterday's close of 53.98.

But soon after initial dollar demand from importers, mainly oil refiners, pushed rupee down to nearly six-week intra-trade low of 54.23, a level not seen since September 20.

The rupee, however, bounced back to 53.77 on dollar selling by exporters amid firm domestic stocks, before concluding at 53.80 - a rise of 18 paise or 0.33 per cent.

The dollar index was down by 0.23 per cent against a basket of six major currencies on cautious trade ahead of the reopening of US financial markets later in the day for the first time after hurricane Sandy. New York crude oil was trading above $86 a barrel in European trade on Wednesday.

The Indian stock market benchmark Sensex on Wednesday closed higher by 74.53 points.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "The liquidity flow in global markets continued to guide the risk on sentiments inducing strengths in rupee... The dollar index continued to edge lower on expectations of the Fed to continue the liquidity programme to overcome the mass destruction caused by Hurricane Sandy."

Rupee's gains on Wednesday were second straight in a row after it belied expectations by rising 10 paise to claw back to 53-level after RBI disappointed market by not cutting repo rate on Tuesday.

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