Tracking upward movement in stocks, the rupee today reversed two days of losses by rising 37 paise to close at 53.47 on fresh selling of dollars from banks and exporters, amid FII inflows worth USD 45 million.
The rupee also got a sentiment boost after US dollar fell against Euro on reports that a victory for Spanish Prime Minister Mariano Rajoy’s party in regional elections makes it easier for Spain to ask for a bailout.
The rupee on Monday resumed lower at 53.90 per dollar as against the last weekend’s level of 53.84 per dollar at the Interbank Foreign Exchange (Forex) Market on good dollar buying from banks.
It, however, recovered afterwards to 53.46 per dollar before ending at 53.47 on renewed selling of dollars from banks due to strength in the domestic equity markets.
During the day, the rupee moved in a 44-paise range of 53.46 per dollar and 53.90 per dollar.
The Indian stock market benchmark Sensex recovered by 111 points, or 0.59 per cent, on strong earnings. Provisional BSE data shows FIIs pumped in Rs 241 crore (USD 45 million) in Indian stocks today.
“A decent rebound in cable currencies exerted pressure on dollar index inducing strength in rupee.. the mood was also lifted by a rise in Indian equity markets. The Euro and GBP rebounded from their lows,” said Pramit Brahmbhatt, CEO, Alpari Financial Services (India).