Rupee logs 4-week closing high of 60.43 vs dollar, up 13 paise
The Indian rupee on Tuesday appreciatedby 13 paise to end at nearly four-week high of 60.43 against the American currency following fresh dollar selling by exporters and sustained investments by foreign funds.business Updated: Aug 26, 2014 21:38 IST
The Indian rupee on Tuesday appreciatedby 13 paise to end at nearly four-week high of 60.43 against the American currency following fresh dollar selling by exporters and sustained investments by foreign funds.
However, some hesitancy in local equities and weak dollar overseas kept the rupee in a tight range.
The rupee resumed better at 60.53 a dollar from overnight close of 60.56 at the Interbank Foreign Exchange (Forex) market and declined further to a low of 60.5550.
However, it rebounded later to settle at the day's high of 60.43, showing a rise of 13 paise or 0.21 %. This is higher than 60.06 on July 30, 2014.
On Monday, it had fallen by nine paise or 0.15 %.
The benchmark S&P BSE Sensex on Tuesday moved side-ways and ended up by a mere 5.79 points logging a new closing peak.
Foreign Portfolio Investors (FPIs) infused Rs 127.33 crore on Monday, as per provisional data.
The dollar index, a gauge of six major global rivals, was down by 0.07 %.
"Local equities opened weak but as the day progressed it recovered and ended near Monday's closing value, helping rupee to appreciate for the day. Dollar index rally slowed down on Tuesday which further supported the rupee movement.
"The trading range for the spot rupee is expected to be within 60.00 to 60.80," said Pramit Brahmbhatt, Veracity Group CEO.
"Inflows kept the rupee strong as FII/FPI was net buyer in capital markets in previous session. But the gains were restricted as the dollar remained strong...," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.
In the forward market, premium remained weak for the second straight on continued receipts by exporters.
The benchmark six-month premium payable in January moved down to 215.5-217.5 paise from 217.5-219.5 paise previously.
Far-forward contracts maturing in July, 2015 also slipped to 459-461 paise from 461.5-463.5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 60.4960 and for the euro at 79.9100.
The rupee recouped against the pound to finish at 100.14 from Monday's close of 100.45 while improved further to 58.16 per 100 Japanese yen from 58.28.
It also strengthened to 79.73 per euro from 79.91 on Monday.