Rupee extends gains for second session, up 12 paise
Continuing its rising streak for the second straight session, the rupee on Friday moved up by another 12 paise to close at 63.52 per dollar on sustained selling of the American currency by banks and exporters.business Updated: May 22, 2015 18:44 IST
Continuing its rising streak for the second straight session, the rupee on Friday moved up by another 12 paise to close at 63.52 per dollar on sustained selling of the American currency by banks and exporters.
Expectation of foreign capital inflows following strong recovery in the equity market also boosted the rupee value.
At the Interbank Foreign Exchange market, the domestic unit commenced strong at 63.58 a dollar from previous close of 63.64, but later met with strong resistance and fell back to a low of 63.63 before concluding at 63.52, showing a gain of 12 paise or 0.19%.
It has gained by 30 paise, or 0.47%, in the past two days.
The domestic currency hovered in a range of 63.52 and 63.63 per dollar during the day.
In the global market, the dollar stayed low against the yen after Bank of Japan governor Haruhiko Kuroda offered a slightly more upbeat outlook on the country's economy.
The Indian benchmark S&P BSE Sensex on Friday bounced back by 148.15 points or 0.53% to close at 27,957.50.
Foreign Portfolio Investors (FPIs) withdrew Rs 186.26 crore on Thursday, as per provisional data.
The dollar index, a gauge of six other major global rivals, was down by 0.36% in Asian trade on Friday.
Pramit Brahmbhatt, Veracity Group CEO, said, "The rupee traded strong and appreciated by over 12 paise during the day to close at 63.52. The rupee started the day on a positive note with the help of higher opening in the domestic equity market."
The trading range for the Spot USD/INR pair is expected to be within 63.20 to 63.80.
In the forward market, the premium recovered moderately on fresh paying pressure from corporates.
The benchmark six-month premium payable in October moved up to 202-203 paise from 199.5-201.5 paise on Thursday while forward contracts maturing in April 2016 also rose to 425.5-427.5 paise from 421.5-423.5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 63.5728 and for the euro at 70.9282.
The rupee recovered against the pound sterling to 99.27 from 99.76 on Thursday while eased against the euro to 71.00 from 70.93 previously.
The domestic currency moved up further against the Japanese currency to 52.52 per 100 yen from 52.55 on Thursday.
First Published: May 22, 2015 10:01 IST