Rupee rallies to more than 1-month high vs dollar at 59.51
The rupee on Monday rallied to one month high of 59.51 against the American currency on dollar selling by banks and exporters in the morning trade on the back of strong foreign capital inflows into equity market.business Updated: May 12, 2014 18:22 IST
In a volatile session, the rupee on Monday rose to nearly ten-month high of 59.51 against US dollar but frittered away all the gains to end one paise down at 60.05 per dollar on late demand of the American currency.
At the Interbank Foreign Exchange (Forex) Market, the rupee resumed higher 59.98 per dollar as against the last weekend's level of 60.04 per dollar.
It firmed up further to 59.51 per dollar on initial selling of dollars by banks and exporters on the back of sustained foreign capital inflows into domestic equity market.
There was buoyancy in the stock markets ahead of exit polls later on Monday that are anticipated to show a stable government coming to power at the Centre when counting ends on May 16.
The rupee had strengthened to 59.45 in intra-day trade on July 29, 2013.
However, the rupee failed to maintain initial gains and closed marginally lower at 60.05 per dollar, registering a loss of one paise. It moved in a range of 59.51 per dollar and 60.12 per dollar during the day.
Banks and exporters initially preferred to reduce their dollar position in view of persistent foreign capital inflows into the equity market.
"The USD/INR pair, however, witnessed recovery with rumours that RBI was buying dollars," said Admisi Forex India in a report.
Meanwhile, the benchmark Sensex rose to all-time high of 23,572.88 before ending at 23,551.00, showing a sharp gain of 556.77 points or 2.42%.
The dollex index was down by 0.04% against the major curreinces in the international market.
However, in New York Market, the euro slid against the dollar on last Friday, dropping through the $1.38 threshold to its lowest level in a month as traders continued to react to the dovish tone of the European Central Bank.