Markets

Rupee gains 9 paise against U.S. dollar

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The rupee on Monday closed 9 paise up against the U.S. currency at 46.06/07 after late intense demand for dollar from importers washed out partly intra-day handsome gains amid strong rebound in stock markets.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened strong at 45.95/96 a dollar from last close of 46.15/16.

Later, it improved further to touch the day’s high of 45.76 in sync with a sharp rise in equities.

However, it fell back on month-end dollar demand from importers, mainly oil refiners, to settle at 46.06/07, still showing a gain of 9 paise.

Dealers attributed the initial spurt in the rupee to strong equities amid sluggish American currency overseas and renewed dollar selling at higher levels by exporters.

“The rupee ended higher today while some dollar demand from oil companies kept the rupee under pressure in the late afternoon session. Major Asian currencies were mixed while most of the Asian stock markets gained today,” India Forex Advisors CEO Abhishek Goenka said.

Alpari Financial Services (India) CEO Pramit Brahmbhatt said, “The rupee ended strong helped by a surge in domestic stocks, joining a rebound across Asia after the US Federal Reserve Chairman Ben Bernanke left the door open for further action to stimulate the world’s biggest economy.”

Dollar index was down by nearly 0.08 per cent against its major six rivals while New York crude oil was trading near USD 86 a barrel in European market today.

The Bombay Stock Exchange benchmark Sensex closed higher by over 567 points or 3.58 per cent.

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Printable version | Jan 19, 2020 1:01:02 AM | https://www.thehindu.com/business/markets/rupee-gains-9-paise-against-us-dollar/article2409180.ece

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