Rupee rises for 2nd session, gains 6 paise vs dollar

The rupee edged higher by one paisa at 62.35 against the dollar in early trade on Thursday at the Interbank Foreign Exchange after the American currency weakened overseas amid a higher opening in the domestic equity market.

business Updated: Apr 16, 2015 20:27 IST

The rupee continued to rule firm against the American currency for the second consecutive day by surging 6 paise to close at 62.30 on persistent selling of dollars by banks and exporters.

A sustained foreign capital inflows into the equity market also boosted the domestic currency's value against the dollar, a forex dealer said.

The rupee opened today at 62.36 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 62.28 and 62.40 per dollar before concluding at 62.30, showing a gain of six paise, or 0.10%.

The domestic currency has gained by 21 paise, or 0.34%, in the last two days.

In the New York market, the dollar tumbled against its rivals yesterday after a spate of weak data suggested that the US economy has yet to move past the slowdown in growth seen in the first quarter.

The dollar index, a gauge of six major global rivals, was up by 0.46% today.

Pramit Brahmbhatt, Veracity group CEO, said, "The rupee traded range bound to slightly strong against the dollar and appreciated by almost 6 paise to close at 62.30, taking cues from the weak dollar index which is heading towards to post its third daily fall in a row and also the continuous dollar selling by exporters helped the rupee to trade strong."

Though the weak local equities which closed in red, capped the rupee gain. The trading range for the Spot USD/INR pair is expected to be within 61.80 to 62.80.

Meanwhile, the benchmark 30-share Sensex dropped by 133.65 points, or 0.46%.

First Published: Apr 16, 2015 11:10 IST