MUMBAI: The rupee appreciated sharply by 52 paise to end at a two-week high of 48.20/21 against the dollar on Monday as the weak U.S. currency overseas and strong equity markets powered its bounce-back.
The dollar dropped to a six-week low in early trade on the London Exchange after equity markets surged on hopes of encouraging earnings.
In fairly active trading at the interbank foreign exchange market, the rupee moved in a range of 48.18 and 48.56 after resuming stronger at 48.52/54 a dollar against Friday’s close of 48.72/73.
Cutting short a two-day losing streak, the rupee rallied to touch a two-week high of 48.18 in afternoon trade as the dollar fell sharply against the euro.
Dealers said the rupee drew support from buoyant equity markets, raising expectations of increased capital inflows in the second half of the calendar year.
Fresh signs of recovery in the economy also aided rupee sentiment.
The Reserve Bank of India, however, fixed the reference rate for the dollar at Rs. 48.43 and for the euro at Rs. 68.59.
The rupee premiums on the forward dollar firmed up further on sustained paying pressure from banks and corporates.
In cross-currency trade, the rupee declined against the pound sterling to end at Rs. 79.68/70 while it recovered against the euro and the Japanese yen. — PTI