Rupee gains 34 paise against dollar at Rs. 46.49/50

The Indian rupee shot up by 34 paise to 46.49/50 against the US dollar to extend gains for the third day on signs of capital inflows, amid the stock markets rising for the fourth day in succession.

The Indian rupee resumed higher at 46.70/71 per dollar against last weekend’s level of 46.83/84 per dollar and shot up further to 46.41 per dollar before concluding at 46.49/50 per dollar.

The rupee has gained 52 paise, or 1.11 per cent, in three trading sessions against the dollar.

Dealers in forex said there was hectic demand for the rupee, with capital inflows surging. The Bombay Stock Exchange benchmark Sensex has been on a four-day gaining streak, adding 721.07 points (4.33 per cent). Today, the 30-share barometer rose 273.2 points, or 1.6 per cent, to finish at 17,338.17.

Asian markets rose for the third consecutive day today as higher confidence among US consumers boosted speculation that demand for products and resources will increase in the world’s biggest economy.

They also said banks and exporters were seen selling the dollar aggressively.

Meanwhile, in London, the euro extended gains to hit a 1-1/2 week high against the dollar on Monday as broad risk concerns eased on the back of gains in equity markets.

Crude oil prices rose above the USD 74 a barrel today in Asia as rallying Asian stock markets bolstered investor confidence. Crude investors often look to equities as a barometer of overall investor sentiment.

The rupee premium for the forward dollar moved up on fresh receiving by exporters.

The benchmark six-month forward dollar premium payable in November closed lower at 65-66-1/2 paise from 66-68 paise last Friday and far-forward maturing in May also finished down at 115-1/2-117-1/2 paise from 119-1/2-121-1/2 paise previously.

The Reserve Bank of India fixed the reference rate for the dollar at Rs. 46.57 and for the euro at Rs. 56.81.

In cross-currency trade, the domestic currency firmed up against the pound and the Japanese yen, while easing against the euro.

The rupee recovered against the pound to end at Rs. 68.41/43 per pound from last Friday’s close of Rs. 68.57/59, while it softened against the euro to Rs. 56.83/85 per euro from Rs. 56.81/83 previously.

It, however, firmed up further against the yen to Rs. 50.63/65 per 100 yen from its last close of Rs. 51.07/09.