Rupee gains against US dollar for the third straight session

  • PTI, Mumbai
  • Updated: Jul 02, 2015 19:26 IST

The Rupee gained ten paise against US dollar and closed at 63.51, strengthening for the third straight session on continued selling
of the greenback by banks and exporters.

Besides, the smooth supply of dollars on fresh capital inflows into equities and debts predominantly weighed on trading sentiments, forex dealers said. Positive comments from the Reserve Bank Governor Raghuram Rajan that India will see limited impact of the debt crisis in Greece as it has little direct exposure to the European nation also supported the overall trade.

The rupee resumed weak at 63.64 as compared to overnight closing level of 63.61 at the Interbank Foreign Exchange (FOREX) market on initial dollar demand from importers and weakened further to hit fresh intra-day low of 63.66, despite a firm opening in the domestic equity markets.

However, the local unit trimmed initial losses and staged a smart rebound following renewed dollar selling to touch a high of 63.49 before concluding at 63.51, showing a gain of 10 paise, or 0.16 %, the level not seen since May 15 this year.

In last three days, it has gained 33 paise. Meanwhile, foreign investors bought shares worth Rs 75.03 crore yesterday, according to provisional data. In overseas trade, the dollar traded marginally higher against a basket of other major currencies amid concerns over
Greece's debt woes and also the release of key US economic data later in the day.

The US dollar index was up by 0.06 % at 96.53. Concurrently, crude prices firmed up after a steep drop in the previous session after data showed an unexpected increase in US oil stockpiles last week.

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