Rupee recovers 8 paise against dollar to close at 61.05

September 16, 2014 09:54 am | Updated 07:52 pm IST - Mumbai

CHENNAI, TAMIL NADU, 29/08/2013: The rupee trimmed its initial gains against the US currency, but was still quoted higher by 120 paise to 67.60 per dollar on August 29, 2013.
Photo: S. R. Raghunathan

CHENNAI, TAMIL NADU, 29/08/2013: The rupee trimmed its initial gains against the US currency, but was still quoted higher by 120 paise to 67.60 per dollar on August 29, 2013. Photo: S. R. Raghunathan

Bucking a weak trend in stocks, the Indian rupee on Tuesday recovered from one-month lows to end with a modest gain of eight paise at 61.05 against the greenback on fresh dollar selling by exporters.

Persistent capital inflows also aided the rupee rise while the dollar index was almost stable against a basket of six major currencies ahead of the outcome of the two-day policy meeting by the US Federal Reserve starting on Tuesday.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced strong at 61.02 a dollar from previous close of 61.13, a one-month low.

It was later trapped in a narrow range of 61.01 and 61.1425 before settling at 61.05, a net rise of eight paise or 0.13 per cent.

On Monday, it had plunged 48 paise, or 0.79 per cent, its biggest fall in more than five weeks.

The Indian benchmark S&P BSE Sensex, after tumbling by 244.48 points or 0.90 per cent on Monday, tanked 324.05 points or 1.21 per cent on Tuesday to end at a three-week low.

FPIs/FIIs bought shares worth $79.57 million on Monday, as per Sebi data.

Pramit Brahmbhatt, Veracity Group CEO said, “Rupee appreciated on Tuesday even as local equities closed down by over one per cent. Rupee movement was aided by lower trade deficit in August. Dollar index rally slowed down on Tuesday, which further supported the rupee. The trading range for the spot rupee is expected to be within 60.50 to 61.50.”

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.