The rupee today snapped its 3-day losing streak by ending 12 paise higher at 55.68 against the American currency on fag-end selling of dollars by banks and exporters amid Euro gaining strength overseas.
The rupee resumed higher at 55.75 per dollar as against 55.80 per dollar at the Interbank Foreign Exchange (Forex) market on mild selling of dollars from banks.
It then hovered in a range of 55.55-55.92 per dollar before ending the day at 55.68, showing a gain of 12 paise or 0.22 per cent from its last close.
This marks a turnaround for the rupee which lost 86 paise or 1.57 per cent in the last three straight sessions.
Dealers said the sentiment was in favour of the rupee as in Hong Kong, the euro stayed close to the $ 1.25 level against the dollar during Asian business hours today.
The euro rallied in early deals as Eurozone’s better-than expected industrial production figures provided a temporary relief to the market that awaits key Greek polls this weekend.
“Rupee was supported by the turn around in the equity market, which is in positive territory due to a rate cut expectation. International factors like strengthening of Euro also supported the domestic currency,” said Sudhir Kumar Jain, GM (Treasury), Dena Bank.
According to Hemal Doshi, Currency Strategist, Geojit Comtrade, going ahead the forex market will take cue from the inflation data which is pegged at 7.6 per cent as per market and anything below the expected figure will support rupee.
Crude oil was also lower at $ 83.20 a barrel in Asian trade today on the eve of an OPEC ministerial meeting in Vienna to discuss production quotas, analysts said.
Meanwhile, the Indian benchmark Sensex advanced by another 18 points or 0.11 per cent to end at 16,880.51.
According to Abhishek Goenka, CEO, India Forex Advisors, tomorrow’s Wholesale Price Index (WPI) figures would be really crucial for rupee.
Amid ongoing speculations on the Greece exit, UK’s Prime Minister Osborne suggested today that the Greece may have to leave the euro zone and these comments have given more twist to the ongoing uncertainty ahead of the Greece re-elections on June 17, Goenka added.
The rupee should trade in the range of 54.50-55 per dollar in the next one month, Jain of Dena Bank said.
The premium for the forward dollar recovered due to fresh paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in November up at 145-147 paise from 142-143-1/2 paise and the far-forward contracts maturing in May also ended higher at 270-272 paise from 263-1/2-265-1/2 paise.
The RBI fixed the reference rate for the US dollar at 55.8505 and for euro at 69.8792.
The rupee held steady against the pound sterling to end at overnight closing level of 86.67 while advanced further against the Japanese yen to settle at 69.90 per 100 yen from 70.13.
It also inched up to close at 69.77 per euro from 69.78 previously.