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Rupee rises for third session vs USD, up 14 paise

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Mumbai: Continuing its rising trend for the third straight day, the rupee today rose by another 14 paise against the American currency to close at 63.51 on sustained selling of dollars by banks and exporters amid gains in equities. Banks and exporters preferred to reduce their dollar position on expectation of more foreign capital inflows in view of recovery in the equity market. At the Interbank Foreign Exchange, the domestic unit resumed strong at 63.50 a dollar from previous close of 63.65 and later moved in a range of 63.46 and 63.60 before concluding at 63.51, disclosing a gain of 14 paise of 0.22 per cent. IT has gained by 66 paise or 1.03 per cent in the three days. However, the dollar index was trading higher by 0.36 per cent against its major global rivals today. While, in New York market, the dollar finished broadly lower for the third straight day yesterday and was on track to record a fifth straight week of losses against the euro, as Treasury yields moved lower. The Indian benchmark Sensex today rebounded by 118 points to end at 27,324.00 following forecast of timely arrival of southwest monsoon by IMD late yesterday amid short-coverings on the last trading day of the week.

Pramit Brahmbhatt, Veracity Group CEO, said, “The rupee traded strong and appreciated by 14 paise during the day to close at 63.51. Local equity market also traded positively which supported the Rupee movement”. Though dollar index traded strong for the day which capped the Rupee gain. The trading range for the Spot USD/INR pair is expected to be within 63.20 to 63.80. In the forward market, the premium ended steady in the absence of market-moving factors. The benchmark six-month premium payable in October finished at 212-214 paise and forward contracts maturing in April 2016 also ruled steady at 435-437 paise. The Reserve Bank of India fixed the reference rate for dollar at 63.5788 and for the euro at 72.3781.  The rupee recovered against the pound sterling to 99.88 from 100.58 previously and also rebounded against the euro to 72.18 from 72.66. The local currency firmed up further against the Japanese currency to 52.99 per 100 yen from 53.38.