Rupee up 5 paise on fag-end dollar selling
The benchmark BSE Sensex failed to maintain initial gains and was trading lower by 13 points in morning trade on Wednesday on mild selling pressure in IT and tech stocks on the back of lower Asian cues.business Updated: Jun 04, 2014 20:53 IST
Snapping a four-day losing trend, the rupee on Wednesday recovered by 5 paise to close at 59.33 against the US currency on fag-end dollar selling by banks and exporters on hopes of good foreign capital inflows into equities.
At the Interbank Foreign Exchange (Forex) market, the local currency resumed lower at 59.40 as against the last closing level of 59.38 and dropped further to 59.48 a dollar.
However, it recovered later to 59.20 per dollar on fag-end selling of dollars by banks and exporters before settling at 59.33 -- a gain of five paise or 0.08%. It hovered in a range of 59.20-59.48 during the day.
Rupee had lost by 45 paise, or 0.76%, in the last four days.
Pramit Brahmbhatt, Veracity Group CEO: "Dollar demand from importers forced rupee to trade low initially. However, it recovered at the end. Investors are being watchful ahead of US job data due later today," Veracity Group CEO Pramit Brahmbhatt said.
The dollar index, consisting of six major global units,was up by 0.05%.
In London, the dollar was bobbing near a 3-1/2 month high and shares dipped for a second day today, as the recent jump in US borrowing costs weighed on markets before what is set to be an action-packed ECB meeting.
However, in New York market, the dollar inched down against major rivals yesterday as investors looked ahead to a European Central Bank meeting that is likely to bring additional easing, which could support the case for dollar strengthening in the longer run.
Meanwhile, the BSE benchmark Sensex moved down by 52.76 points, or 0.21%, to 24,805.83.