Rupee up 5 paise on fag-end dollar selling

Snapping a four-day losing trend, the rupee on Wednesday recovered by 5 paise to close at 59.33 against the U.S. currency on fag-end dollar selling by banks and exporters on hopes of good foreign capital inflows into equities.

At the Interbank Foreign Exchange (Forex) market, the local currency resumed lower at 59.40 as against the last closing level of 59.38 and dropped further to 59.48 a dollar.

However, it recovered later to 59.20 per dollar on fag-end selling of dollars by banks and exporters before settling at 59.33 — a gain of five paise or 0.08 per cent. It hovered in a range of 59.20-59.48 during the day.

Rupee had lost by 45 paise, or 0.76 per cent, in the last four days.

Pramit Brahmbhatt, Veracity Group CEO: “Dollar demand from importers forced rupee to trade low initially. However, it recovered at the end. Investors are being watchful ahead of US job data due later today.”

The dollar index, consisting of six major global units, was up by 0.05 per cent.

In London, the dollar was bobbing near a 3 1/2 month high and shares dipped for a second day, as the recent jump in U.S. borrowing costs weighed on markets before what is set to be an action-packed ECB meeting.

However, in New York market, the dollar inched down against major rivals on Tuesday as investors looked ahead to a European Central Bank meeting that is likely to bring additional easing, which could support the case for dollar strengthening in the longer run.

Meanwhile, the BSE benchmark Sensex moved down by 52.76 points, or 0.21 per cent, to 24,805.83.