Rupee recovers by 29 paise; closes at 54.52 Vs dollar
Mumbai: The Indian rupee recovered marginally by 29 paise to close at 54.52 against the Greenback during the shortened week under review following fresh dollar selling by exporters amid sustained capital outflows.
However, weakness in domestic equities restricted the rupee rise to some extent, a forex dealer said.
The Forex market was closed on April 11 on account of "Gudi Padwa".
At the Interbank Foreign Exchange (Forex) market, the local unit commenced almost stable at 54.80 a dollar from last weekend's close of 54.81 and immediately touched a low of 54.84 on initial dollar demand from importers and hesitancy in domestic equities.
It later bounced back to a high of 54.34 before ending the week at 54.52, showing a rise of 29 paise or 0.53 percent. Last week, it had tumbled by 52 paise or 0.96 percent.
The Indian benchmark Sensex closed down by nearly 208 points or 1.13 percent, extending losses for the second week while FIIs pulled out Rs 587.19 crore in the week, including provisional data of April 12.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "This week Rupee appreciated against dollar. To start the week the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, traded weak at 82.33 as the euro advanced against the dollar, supporting the rupee."
Meanwhile, retail inflation declined to 10.39 percent in March from 10.91 percent in February. Factory output, as measured by the Index of Industrial Production (IIP) has slipped to 0.6 percent in February this year as against 4.3 percent in same month last year.
The rupee premium for the forward dollar finished sharply lower on fresh receiving by exporters.
The rupee premium for the benchmark six-month forward dollar payable in September closed down at 177-1/2-179 paise from last weekend's level of 192-194 paise and far-forward contracts maturing in March also ended lower at 349-350-1/2 paise as against 366-368 paise.
The RBI fixed the reference rate for the US dollar at 54.4425 and for euro at 71.3310 as against the last weekend's level of 54.8803 and 70.9044.
The rupee remained weak against the pound sterling to 83.82 from preceding weekend's level of 83.43 and also dropped further against the euro to end at 71.18 from previous weekend's close of 70.84.
However, it strengthened further against the Japanese yen to settle at 54.94 per 100 yen from last weekend's level of 57.00.