Tracking local stocks, the rupee today regained 19 paise to end at 61.85 against dollar as reports of easing geopolitical tension between Russia and Ukraine helped emerging market currencies script a smart recovery.
Continued dollar inflow from foreign funds in stocks and selling of the American currency also aided the sentiment, said forex traders.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed lower at 62.12 a dollar from previous close of 62.04 and touched a low of 62.15 on initial hesitancy in local shares.
It later bounced back to a high of 61.82 before closing at 61.85, a rise of 19 paise or 0.31 per cent.
Yesterday, it had settled down 29 paise or 0.47 per cent.
The dollar index was down by 0.13 per cent against its major global rivals as fears eased after reports of Russian troops withdrawal.
The ruble climbed about 0.7 per cent versus the dollar after dropping 1.8 per cent yesterday. Poland’s zloty rose nearly 0.7 percent versus the euro, after a sharp slide yesterday. Japan’s Yen dropped versus all its 16 major peers.
“The rupee ended on a positive note amid easing geopolitical concerns globally. The Russia—Ukraine conflict has been threatening the global sentiments and boosting the demand for safe haven since last couple of sessions.
“However these concerns are getting eased as Russia’s President ordered troops in military drills in central and western Russia to return to base,” said Abhishek Goenka, Founder and CEO, India Forex Advisors.
The Indian benchmark S&P BSE Sensex today spurted 263.08 points, or 1.26 per cent, to end at five—week high while FIIs infused USD 32.83 million yesterday as per Sebi data.