Indian rupee touches over 5-month high against US dollar
BT Online Bureau October 3, 2012The Indian rupee rallied by another 24 paise to close at nearly five-and-a-half-month high of 52.16 against the US currency following sustained dollar selling by exporters amid sustained capital inflows in rising local equities , extending gains for the fourth straight trading session.
The rupee logged a high of 52.13 before concluding at 52.16, a level not seen since April 20, 2012, when it had settled at 52.08, showing a rise of 24 paise or 0.45 per cent.
The 30-share BSE Sensex was up nearly 46 points or 0.24 per cent, extending gains for the third straight session.
Foreign Institutional Investors (FIIs) infused $43.89 million on Monday according to the data with Securities and Exchange Boardof India (Sebi), taking a total to almost $16.16 bln in 2012 till October 1.
However, firm dollar overseas limited the rupee rise, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 52.52 a dollar from previous close of 52.40 and immediately touched a low of 52.57 on initial dollar demand from importers and strong US dollar overseas.
Later, it bounced back on continued dollar selling by exporters and some banks on hopes of fall in dollar overseas as it trimmed its early gains versus most global rivals as investors awaited ADP's private-sector job gauge, developments in Spain, and the first of three US presidential debates.
Its index was quoting up by 0.12 per cent against a basket of currencies.
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "A sustained capital inflows and exporter selling in anticipation of higher policy reforms by government has been inducing strengths in INR. A weaker stance by dollar index also strengthened the INR's cause."
With inputs from PTI