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Updated: August 8, 2013 22:14 IST

Rupee rebounds 42 paise on central bank intervention

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The rupee, on Thursday, recovered from an all-time closing low, adding 42 paise to end at 60.88 against the dollar amid expectations the government would announce fresh steps to support the rupee.

A rebound in local equities, a weak dollar overseas and fresh dollar sales by exporters also aided the rupee.

The rupee opened higher at 61.20 a dollar from its previous close of 61.30 at the interbank foreign exchange market. It declined to 61.40 and bounced back to 60.82 before settling at 60.88, a rise of 42 paise.

The rupee had tumbled 53 paise on Wendesday.

Our Mumbai Correspondent writes:

Many market participants also confirmed that the RBI intervened in the foreign exchange market through public sector banks to curb volatility in the value of the rupee against major currencies.

Meanwhile, stock indices also recovered on bourses, with the Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) closing at 18789.34, a gain of 124.46 points.

Except oil & gas and healthcare, which lost 0.21 per cent each, all other sectoral indices ended in the positive territory. The BSE’s mid cap stocks gained smartly by 1.34 per cent while small cap stocks gained by 1.32 per cent.

On the National Stock Exchange (NSE), the 50-share Nifty gained 46.55 points to close at 5565.65.

Needed breather

“Markets got a much needed breather as the Nifty recovered more than half percent after a flat start. And for second day in a row, market breadth was positive,” said Jayant Manglik, President - Retail Distribution, Religare Securities Limited. Though a recovery in the rupee has triggered some bounce in equities, the overall move lacks conviction and the bears are still in control, said Mr. Manglik.

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