The rupee on Wednesday snapped its three-session losing streak and recovered by 8 paise to close at 44.43/44 against the US currency on fresh dollar selling, despite sluggish local and increased capital outflows, amid firm dollar overseas.
“Globally, dollar weakened against the major currencies like euro, GBP and Asian Currencies, which helped rupee to appreciate despite of weak local equities. The levels to watch out for Rupee would be 44.70,” Alpari (Forex) India CEO Pramit Brahmbhatt said.
“The trading range for the USD/INR will be between 44.25—44.75 tomorrow,” he added.
At the Interbank Foreign Exchange (Forex) market, the local unit opened higher at 44.43/44 a dollar from previous closing of 44.51/52.
Later, it was trapped in a narrow range of 44.36/50 and 44.48/50 before concluding at its opening level of 44.43/44.
Fresh selling of dollars by exporters and some banks, due to continued slide in American currency in New York yesterday mainly helped the rupee to rebound from its overnight 3-week closing low.
The US dollar continued its slide yesterday in New York market as the dollar index touched lows not seen since August 2008 over concerns the Federal Reserve will maintain a loose monetary policy.
However, the dollar index of six major currencies was up by 0.18 per cent in european market today.
Contrary to the rupee rise, the 30-share benchmark Sensex today dropped by 96.66 points, or 0.49 per cent, to 19448.69 and Foreign Institutional Investors (FIIs) sold shares worth USD 318.83 million in first two days of the week.
The rupee premium for the forward dollar declined further on sustained receivings by exporters. The benchmark six-month forward dollar premium payable in September closed lower at 135-136 paise from Tuesday’s close of 138-1/2—139-1/2 paise.
Far-forward contracts maturing in March also finished down at 288-290 paise from 293-294-1/2 paise in the previous session.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.40 and the euro at Rs 65.17.
The rupee fell back against the pound sterling to end at Rs 73.57/59 from Tuesday’s close of Rs 73.34/36 and dropped to Rs 65.20/22 against the euro from last close of Rs 65.00/02.
It, however, recouped against the Japanese yen to Rs 54.05/07 per 100 yen from Rs 54.49/51 yesterday.
