Moving side-ways in line with local equities, the rupee today recovered by 8 paise to close at 49.18/19 against the U.S. currency on late dollar selling by exporters.
Weak dollar overseas ahead of the U.S. Federal Reserve’s two-day policy meeting as well as latest developments on Greek’s fresh bail-out plan helped the rupee rebound.
At the Interbank Foreign Exchange (Forex) market, the local currency opened weak at 49.40/41 a dollar from overnight close of 49.26/27 and immediately logged a low of 49.45.
Dealers attributed initial fall to sluggish opening in local stocks due to negative global advices and also good dollar demand from banks and importers in view of higher dollar in New York yesterday.
The euro yesterday skidded to its lowest level against the dollar in almost a month at the New York market, as the Greece Prime Minister’s decision, to seek a referendum on the country’s latest bailout sparked fears that the European debt crisis could spiral out of control.
However, the rupee bounced back on recovery in stocks amid fresh dollar selling by exporters and touched a high of 49.15 before concluding at 49.18/19.
“The trading range for the USD/INR will be 49.00 to 49.50 tomorrow,” Alpari Financial Services (India) CEO Pramit Brahmbhatt said.
After gyrating in more than 275 points, the benchmark Sensex settled just down by nearly 16 points or 0.09 per cent.
The dollar index, a measure of six major currencies, was down by nearly 0.5 per cent while New York crude oil was trading near $ 93 a barrel in European markets today.
