Mumbai : The rupee today recuperated by 46 paise to close at an eight-week high of 64.95 against the US dollar on fresh selling of the American currency by banks and exporters on persistent foreign capital inflows into domestic equities. Weakness of dollar in the overseas market also boosted the domestic currency, a forex dealer told PTI.
“Among day’s major market moving events, Spot rates for Indian rupee against US dollar was seen trading close to Rs 65 per dollar in today’s trade after FII inflows kept the rupee stronger. The rupee is seen at these levels for the first time after 14th August,” said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio. The rupee had last ended at 64.78 per dollar on August 12, 2015. It hovered in the range of 65.3650 to 64.9500 per dollar during the day.
The dollar has been weakening against most major currencies as well as Asian currencies after the release of poor jobs data on Friday. The disappointing US September jobs reports raised doubts that the US Federal Reserve may not hike interest rates anytime this year.
At Dalal Street, oil and gas and metal stocks were among the major gainers, which pushed up Indian market for the sixth day on the trot, helping the benchmark BSE Sensex to scale back 27,000-level as global cues firmed on recovery in crude oil prices.
The BSE barometer index jumped by 102.97 points to close at 27,035.85 — a level not seen since August 21. Hindalco was the top Sensex gainer with a rise of 9.64 per cent. Vedanta and Tata Steel followed with rise of up to 5.83 per cent. A rebound in crude oil prices led to hopes of improving valuations of crude oil inventories of upstream companies, leading to an upsurge in their share prices. Oil India, Oil and Natural Gas Corp, and Cairn India rose 2-4%. As Chinese markets open after a five-day hiatus on Thursday, Indian markets are likely to witness some volatility, said a dealer.
