Rupee rebounds from one-week low, up 9p at 62.16 vs US dollar

It snapped its four-day falling trend on the back of dollar selling by banks and exporters, amid rise in stocks.

March 05, 2015 07:54 pm | Updated 08:02 pm IST - Mumbai

Photo: V. Sudarshan

Photo: V. Sudarshan

Rebounding from one-week low, the Indian rupee today rose by 9 paise to finish at 62.16 against the dollar.

It snapped its four-day falling trend on the back of dollar selling by banks and exporters, amid rise in stocks.

Moreover, dealers avoided taking any long dollar positions ahead of a long weekend.

The rupee resumed lower at 62.32 a dollar at the Interbank foreign Exchange (Forex) market and weakened further to 62.34 due to initial dollar demand as well as volatile trend in stocks.

However, the domestic currency staged a recovery in late afternoon trade and closed at 62.16 per dollar, showing a smart gain of 9 paise, or 0.14 per cent.

The local unit had lost 33 paise to close at 62.25 against the dollar yesterday—its lowest level in one-week amid RBI Governor Raghuram Rajan’s comment that an “excessively strong rupee” is undesirable as it triggers disinflationary pressures.

“A strong dollar in the international market continues to limit any appreciation of the rupee. Dollar index is trading higher ahead of U.S. February jobs data tomorrow and following better—than—expected U.S. economic data yesterday. Euro fell against greenback before ECB meet today,” said Admisi Forex India Pvt Ltd, Director, Suresh Nair.

Both the benchmark indices today staged a modest rebound after yesterday’s heavy fall with benchmark Sensex rising over 68 points and the Nifty moving up by 15 points.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 2,786.24 crore yesterday, as per provisional data. Benchmark brent crude continued to trade above the USD 60 a barrel mark.

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