Rupee surges 35 paise vs dollar, extends gains for 2nd day
Extending gains for the second straight day, the rupee on Thursday surged by 35 paise to 63.65 on persistent selling of dollars by banks and exporters on weakness of the American currency in overseas market.business Updated: May 14, 2015 18:11 IST
Extending gains for the second straight day, the rupee on Thursday surged by 35 paise to 63.65 on persistent selling of dollars by banks and exporters on weakness of the American currency in overseas market.
Banks and exporters preferred to reduce their dollar position in view of lower greenback demand in overseas market. The unit continued to weaken in the global market, sending a benchmark dollar index to the lowest level since late January as recent sluggish US data prompt investors to rethink the timing of the first Federal Reserve rate hike.
The dollar index was trading down 0.38% against its major global rivals.
In New York market, the US dollar weakened against most of its major rivals on Wednesday after a slate of disappointing economic data. The rupee opened higher at 63.97 per dollar against the last closing level of 64.00 at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 63.61 and 64.04 before concluding the day at 63.65, showing a gain of 35 paise or 0.55%.
The rupee has increased by 52 paise or 0.81% in the last two sessions. In an irregular trade, the Indian benchmark Sensex trimmed major part of its early losses on hopes of rates cut by the central bank following fall in inflation data. The index closed with a small loss of 45 points at 27,206.06.
"Rupee traded strong and appreciated by half quarter% during the day to close at 63.65. Rupee started the day on a positive note as weak dollar index supported the rupee movement though weak local market capped the gains," said Pramit Brahmbhatt CEO of Veracity Group.
The trading range for the Spot USD/INR pair is expected to be within 63.20 to 64.00. In the forward market, the premium declined on fresh receivings by exporters.
The benchmark six-month premium payable in October fell to 212-214 paise from 215.6-218.5 paise on Wednesday and forward contracts maturing in April 2016 also moved down to 435-437 from 437.5-439.5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 63.8380 and for the euro at 72.8775. The rupee moved down against the pound sterling to 100.58 from 100.20 previously and also declined against the euro to 72.66 from 71.89. However, it firmed against the Japanese currency to 53.38 per 100 yen from 53.47.