Wednesday, February 2, 2011

Rupee recovers 15 paise against dollar amid weak equity markets

PTI

The Hindu According to Forex traders, a sudden gust of dollar selling by exporters and some corporates helped the rupee rise. File Photo

Snapping its two-day long loosing streak, the rupee today closed 15 paise up against the U.S. currency on the back of fresh sales of dollars by exporters even as equity markets witnessed sharp losses.

According to Forex traders, a sudden gust of dollar selling by exporters and some corporates helped the rupee rise.

The Bombay Stock Exchange benchmark Sensex today closed sharply lower by 305.54 points or 1.67 per cent. It, however, did not impact the rupee sentiment.

At the Interbank Foreign Exchange (Forex) market, the local currency resumed better at 45.85/86 a dollar from its last close of 45.90/91 and immediately touched the day's low of 45.90 due to weakness in local equities.

The dollar index of six major currencies was down by over 0.3 per cent to nearly 2-1/2 month low in European market today, which also aided the rupee sentiment.

The rupee later recovered smartly to a high of 45.7450 before concluding the day at 45.75/76.

Foreign Institutional Investors (FIIs) pulled out over USD 1.2 billion in the current calendar so far.

Meanwhile, global crude oil was trading above USD 91 a barrel in London today.

The rupee premium for the forward dollar ended higher on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in July closed slightly higher at 142-1/2-144-1/2 paise from 142- 143-1/2 paise previously.

Far-forward contracts maturing in January also finished up at 271-273 paise from 264-1/2-266 paise on Monday.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs. 45.81 and the euro at Rs. 62.84.

The rupee continued to rule weak to close at Rs. 73.68/70 against the pound sterling from overnight closing level of Rs. 72.98/73.00 and also dropped further against the yen to Rs. 56.13/15 per 100 yen from Rs. 55.84/86 previously.

It, however, fell back to Rs. 62.95/97 per euro from its last close of Rs. 62.45/47.


News From: http://www.7StarNews.com

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