Rupee gains 35 paise to end at four-week high against US dollar
The rupee strengthened by 32 paise at over four-week high of 62.35 against the US dollar in early trade on Friday at the Interbank Foreign Exchange on sustained selling of the US currency by exporters and banks amid higher opening in the domestic equity market.business Updated: Jan 09, 2015 18:20 IST
Notching up gains for the third successive session, Indian rupee on Friday surged 35 paise to end at four-week high of 62.32 against the greenback on persistent selling by participants and on continued optimism of inflows. Weakness in the dollar in overseas markets also boosted the rupee value, forex dealers said. For the week, the local currency gained 97 paise, its biggest weekly rise since mid-May last year. The rupee on Friday resumed higher at 62.48 per dollar as against the last closing level of 62.67 per dollar at the Interbank Foreign Exchange (Forex) Market. It firmed up further to 62.29 per dollar, before finishing at 62.32 per dollar -- a gain of 35 per paise of 0.56%.
In three days, the rupee has now gained 125 paise or 1.97%. The rupee's closing is the best since 62.29 on December 12, 2014. Meanwhile, the Indian stocks benchmark Sensex rose by 183.67 points, or 0.67%, to finish at 27,458.38. "Rupee strengthened for the third straight session on continued dollar selling by exporters and banks. Firm equity markets also supported sentiments as investors hope that foreigners continue to buy in domestic debt and equity," said Admisi Forex India Pvt Ltd, Director, Suresh Nair.
In global currency market, the dollar index was down by 0.25% against a basket of six major global rivals. The dollar was lower against the yen and the euro in Asian trade on Friday, with investors adopting a wait-and-watch stance ahead of US data scheduled later for release in the day. Crude oil prices rose in Asia on Friday after recent heavy falls, but analysts said the uptick is not likely to be very strong owing to ample global supplies.
Veracity Group CEO Pramit Brahmbhatt said: "FII buying in Veracity Group CEO Pramit Brahmbhatt said: "FII buying in debt market helped rupee to trade strong against the dollar." The trading range for the spot USD/INR pair is expected to be within 61.80 to 63.00, he added.
Meanwhile, premia recovered marginally on paying pressure from corporates. The benchmark six-month premium payable in June ended steady at 218-220 paise while forward contracts maturing in December moved up to 423-425 paise from 421-423 paise.
The Reserve Bank of India fixed the reference rate for dollar at 62.3953 and for Euro at 73.6140. The rupee surged further to 94.41 from 94.43 against the pound previously and moved up further to 73.61 per euro from 73.79 on Thursday. It also firmed up to 52.25 per 100 Japanese yen as compared to 52.30 on Thursday.