Rupee rises by 6 paisa against dollar at 55.57

Rupee rises by 6 paisa against dollar at 55.57 Mumbai: Snapping a six-day losing run, the rupee Monday closed six paise higher at 55.57 against the US dollar on the back of good inflows in equities and dollar selling by some exporters.

A weak US dollar overseas also aided the rupee sentiment.

The rupee commenced lower at 55.70 a dollar from previous close of 55.63. It immediately touched a low of 55.78 on initial caution in domestic equities and sustained dollar demand from importers, mainly oil refiners to meet their month end requirements.

However, a solid surge in local stocks and revival of dollar selling by exporters pushed the rupee up to a intra-day high of 55.52. It finally settled at 55.57, showing a rise of six paise or 0.11 percent.

In six trading sessions (May 17 - May 24), rupee had plunged by 86 paise or 1.57 percent on worries over US monetary stimulus withdrawal and a spate of dollar uying.

The Indian benchmark S&P BSE Sensex Monday flared up by 326.44 points, or 1.66 percent, amid FIIs pumping in over RS 400 crore in domestic equities, shows data from stock bourses.

The dollar index, a gauge of six major currencies, was down by 0.12 percent.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: ,"Monday, rupee appreciated by over 0.10 percent taking cues from positive equity markets, which closed up. The dollar index traded weak mainly against the euro and yen which further helped the rupee to trade strong. As Rupee May futures contract is expiring on Wednesday, it is expected to trade & close within 55.35-55.85 range."

PTI