| Indian rupee gains 36 paise against dollar |
MUMBAI The Indian rupee recovered most of its overnight losses and appreciated by 36 paise to close at 55.12 against the greenback following firm local equities amid fresh dollar selling by exporters.
Weakness in dollar overseas amid sustained capital inflows also aided the rupee rise, a forex dealer said.
At the Interbank Foreign Exchange (forex) market, the local currency resumed higher at 55.34 a dollar from previous close of 55.48 and moved in a range of 55.45 and 55.11 before concluding at 55.12, showing a rise of 0.65 pct. On Wednesday, it had fallen by 37 paise or 0.67 per cent.
The benchmark Sensex closed higher by 93.84
points or 0.55 per cent.
The dollar index, a gauge of six major currencies, was down by 0.21 pct while New York crude oil was trading above $91 a barrel in European market.
Foreign Institutional Investors (FIIs) pumped in $68.12 million on Wednesday, taking a total to over $1.6 billion in the current month till July 18.
Selling of dollars from exporters and banks also pushed the rupee value higher.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said:” The INR witnessed a volatile session remaining weak in the first half tracking rising dollar index but strengthened in the second half following local cues. The rupee gained strength on hopes of reforms likely to be initiated by the UPAII after the presidential election.”
“The government assured the markets on its reforms like making the FDI in realty by 15th of August 2012, taking up of the FDI in Aviation, willing to stick to the Basu committee recommendations over fix subsidy for diesel prices and also fixing the Fiscal deficits. The government is most likely to raise diesel prices and cut the subsidy in LPG in next week to avoid downgrading further credit ratings. The global cues still remain a threat to the INR as the currency cannot remain immune to the grim global economic outlook,” he added.
“As said earlier, the Indian rupee is trading range bound and consolidating between the range of 54.80 - 55.50 levels.”
“The dollar index was seen falling drastically from Wednesday’s level of 83.40 to 82.80 today which helped the local currency to gain against it. Now the eyes will be turning on RBI and FED policy meet due on the same day i.e. on 31st July which will again make the markets to be volatile,” said Abhishek Goenka, (Founder & CEO, India Forex Advisors).
Press Trust of India
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