Rupee gains for first time in four days, ends 31 paise higher
Mumbai: The rupee advanced for the first time in four sessions on Wednesday, ending 31 paise higher at 62.44 against the dollar as exporters and some banks sold the US currency, which weakened in the overseas market.
The rupee resumed at 62.76 a dollar against the previous close of 62.75 at the interbank foreign exchange market and dropped to 62.88 on sustained dollar demand from importers. The local currency recovered to 62.31 as banks sold dollars and ended at 62.44, a gain of 31 paise or 0.49 per cent. In the previous three trading sessions, the rupee had tumbled 98 paise.
"On account of half-yearly closing, there is a possibility that corporates, mainly IT exporters, might have sold dollars in the markets. This has helped the rupee to gain against the US dollar," said Abhishek Goenka, CEO of India Forex Advisors. In London, the euro rose against most major currencies on Wednesday as solid German consumer-confidence data offset worries about the European Central Bank's monetary policy.
In New York, the dollar gained yesterday as investors examined economic data and speeches from Federal Reserve officials for insight into when the central bank could begin to slow its monthly asset purchases.
Meanwhile, crude oil prices rose in Asia as investors expected a report to show US stockpiles fell, indicating firm demand in the world's top crude consumer, analysts said.
The 30-share benchmark S&P BSE Sensex fell 64 points to 19,856.24 on Wednesday.
The trading range for the spot USD-INR pair is expected to be within 62.00 to 63.00, said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
Forward dollar premiums continued to rule firm on persistent payments from banks and corporates.
The benchmark six-month forward dollar premium payable in February hardened to 238-243 paise from Tuesday's close of 234-239 paise and far-forward contracts maturing in August firmed up to 454-459 paise from 444-449 paise.
The RBI fixed the reference rate for the dollar at 62.6981 and for the euro at 84.4589.
The rupee improved to 100.15 against the pound from 100.35 previously and recovered to 84.36 per euro from 84.62. It advanced against the Japanese yen to end at 63.40 per 100 yen from 63.52 previously.