Mumbai: In step with smart recovery in local equities, the Indian rupee today rebounded by 28 paise to close at 62.50 against the American currency on fresh dollar selling by exporters. A weak dollar overseas also helped the rupee recover from two-month lows, said forex dealers, adding that IMF upping India growth forecast and hopes of insurance bill passage in Parliament also boosted sentiments.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commence a tad higher at 62.77 a dollar from previous close of 62.78 and then touched a low of 62.79. It recovered on rise in local stocks. The rupee hit a high of 62.49 before concluding at 62.50, a net rise of 28 paise or 0.45 per cent. In last three sessions, it had plunged by 62 paise or 1.00 per cent.
The Indian benchmark S&P BSE Sensex bounced back by 271.24 or 0.95 per cent after straight three days of fall. Foreign Portfolio Investors (FPIs) withdrew Rs 444.65 crore yesterday, as per provisional data. The dollar index was down by 0.55 per cent against major global rivals. Pramit Brahmbhatt, Veracity Group, CEO said: “Optimistic statement given by the IMF helped the rupee trade strong and appreciate nearly half a per cent. Rupee closed up taking aid from local equities. The trading range for the spot rupee is expected to be within 62.00 to 63.00.”
Meanwhile, the forward premia closed mixed. The benchmark six-month premium payable in August edged lower to 224.5-226.5 paise from 225.25-227.25 paise yesterday while the forward contracts maturing in February 2016 rose to 441.5-443.5 paise from 437.25-439.25 paise. The Reserve Bank of India fixed the reference rate for dollar at 62.5665 and for Euro at 65.9451.
The rupee shot up further against the pound to 93.69 from 94.45 Wednesday and also improved slightly to 51.64 per 100 Japanese yen from 51.67 yesterday. However, it reacted downwards slightly to 66.41 per euro from 66.37.