The rupee snapped a four-week losing streak and recovered by 44 paise to close at three-week high of 60.16 against the US dollar following fresh selling of the American currency by exporters and some banks amid sustained capital inflows despite weak local stocks.
The forex market was closed on Thursday on account of “Maharashtra Day”.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 60.62 per dollar from last weekend’s close of 60.60 and dropped further to 60.76 on month-end dollar demand from importers amid a weak local equity market.
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But, later it bounced back to 60.09 before ending the week at 60.16, showing a rise of 44 paise, or 0.73 per cent.
In the last four-weeks, it had lost 69 paise, or 1.15 per cent.
The benchmark S&P BSE Sensex closed the week down by 284.18 points, or 1.25 per cent, while FIIs infused $245.24 million on the first three days of the week, as per SEBI data.
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Pramit Brahmbhatt, Veracity Group CEO, said,” The rupee appreciated during the week. Corporate inflows and exporters selling dollars helped it to trade strong against the dollar.
Now the next psychological support for the dollar-rupee pair is at 59.80 levels. The trading range for the spot dollar-rupee pair is expected to be within 59.60 to 60.80.”
The benchmark six-month forward dollar premium payable in October closed the week at 225—1/2—227—1/2 paise. Far-forward contracts maturing in April, 2015 ended at 456—458 paise.
The RBI fixed the reference rate for the dollar at 60.2250 and for the euro at 83.4590 from 61.1163 and 84.5220, respectively.
The rupee recovered against the pound sterling to end at 101.49 from last weekend’s close of 101.88 and also firmed up against euro to finish at 83.38 from 83.85.
However, it bounced back against the Japanese currency to close at 58.72 per 100 yen from preceding weekend’s close of 59.38.