Rupee rebounds by 53 paise as CAD slides over quarter
After falling to an all-time low on Wednesday, the rupee gained 53 paise, its best single-day gain in a fortnight, to end at Rs 60.19 against the dollar.business Updated: Jun 27, 2013 21:54 IST
After falling to an all-time low on Wednesday, the rupee gained 53 paise, its best single-day gain in a fortnight, to end at Rs 60.19 against the dollar due to sharp moderation in current account deficit (CAD) and surge in equities.
Fresh dollar selling by exporters on hopes of fall in the US dollar after downward revision to the country’s first quarter GDP growth also helped rupee recover as hopes surfaced that the Fed may delay the plan to taper of monetary stimulus.
The rupee, on Wednesday, had plunged by a whopping 106 paise, or 1.78%, to an all-time closing low of 60.72 because of surge in month-end dollar demand.
At the Interbank Foreign Exchange (forex) market, the domestic unit resumed higher at 60.45 a dollar from previous all-time closing low of 60.72.
Later, it touched a low of 60.63 but with March quarter CAD coming at 3.6% against expectations of 4.4%, the rupee rallied. It rebounded to a high of 60.10, before concluding at 60.19, rise of 53 paise, or 0.87% — its best rise since June 12 (60 paise).