Rupee closes at four-and-a-half month high

The rupee gained 49 paise on Thursday to end at over 4-1/2-month high of 53.02 against the US dollar on heavy selling of the American currency by exporters and some banks.

Forex dealers said dollar selling was so strong that some weakness in local equities and also in the US currency overseas did not have impact on rupee

The local unit logged a low of 53.55 in early trade.

However, heavy dollar selloff by exporters and some banks amid continuing signs of dollar inflows by foreign funds helped the rupee to bounce back to a high of 53.00 before settling at 53.02, showing a rise of 49 paise, or 0.92 per cent from its last close.

The rupee had concluded at 52.91 on May 7 this year.

Meanwhile, the BSE benchmark Sensex today ended lower by 52.67 points, or 0.28 per cent, at 18,579.50.

“The positive domestic sentiments ruled the day, aiding sharp gains in rupee on active policy reforms agenda and government supportive supreme court verdict on auctions,” Alpari Financial Services (India) CEO Pramit Brahmbhatt said.

Lack of major dollar buying by importers, mainly oil refiners, on hopes of further fall in oil prices overseas also aided the rupee sentiment, dealers said.

New York crude oil was trading just above USD 91 a barrel and Brent North Sea crude for November delivery was quoting below USD 111 a barrel.

The dollar index was slightly weak by 0.06 pct against a basket of six major global rivals ahead of the Spanish government’s budget later in the day with a little bit of optimism.

The premium for the forward dollar fell back on fresh receipts by exporters.