Rupee snaps losing streak, gains 29 paise

The Indian rupee closed 29 paise higher at Rs 52.06/07 per US dollar on Thursday after its eight-day losing streak was arrested by fresh selling of the American currency by exporters and some corporates, coupled with dollar weakness overseas and a smart rise in domestic equities.

However, sustained capital outflows limited the rise in the rupee value.

At the Interbank Foreign Exchange, the domestic currency opened lower at Rs 52.40/41 a dollar, as against its previous close of Rs 52.35/36 per dollar, amid initial weakness in local stocks and sustained dollar demand from importers.

However, sudden dollar-selling by exporters and some big corporates amid expectations of apex bank intervention in the foreign exchange market boosted the rupee sentiment.

The rupee later touched a high of 52.02 before concluding at 52.06/07, translating into a gain of 0.55 per cent. In the past eight trading sessions, the rupee has lost a whopping 223 paise, or 4.45 per cent.

Meanwhile, the BSE benchmark Sensex, which was down by 220 points in afternoon trade, made a start recovery on fag-end buying to settle higher by 158.52 points, or 1.01 per cent.