Indian rupee rises to over 1-month high

The Indian rupee today appreciated for the second straight session and rose 19 paise to log its over one-month closing high of 61.87 against the Greenback following sustained dollar selling by exporters and capital inflows in local shares.

However, a strong dollar overseas after Switzerland’s unexpected move to lift its currency restriction, capped the rupee’s gains. The dollar index was up 0.41 per cent against its major global rivals while the euro hit over a decade low.

At the Interbank Foreign Exchange Forex market, the domestic unit commenced slightly lower at 62.08 a dollar from previous close of 62.06. It then declined further to a low of 62.20 on some hesitancy in local equities in early trade.

However, rupee bounced back on a late rally in domestic stocks to a high of 61.79 before settling at 61.87, showing a rise of 19 paise or 0.31 per cent. Yesterday, it had risen by 12 paise or 0.19 per cent.

This its strongest close since 61.83 on December 8, 2014.

The stock benchmark S&P BSE Sensex today improved further by 46.34 points, or 0.17 per cent. FPIs bought shares worth USD 274.03 million yesterday, as per Sebi data.

Pramit Brahmbhatt, Veracity Group, CEO said,” Rupee appreciated taking cues from strong local equities. Also, the FIIs buying in debt market helped rupee to trade strong against the mighty dollar index which is heading towards to post its fifth weekly gain in a row.”

The trading range for the spot USD/INR pair is expected to be within 61.40 to 62.40, he added.

“The Indian rupee opened the session on almost flat note. The domestic currency continued to gain as trade deficit narrowed to its 10-month low levels,” according to India Forex Advisors.

Meanwhile, premia remained on consistent receipts by exporters.

The benchmark six-month premium payable in June declined to 199.5-201.5 paise from 202-204 paise yesterday.

Premium on forward contracts maturing in December also slipped to 395-397 paise from 401-403 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.8933 and for Euro at 72.0067.

The rupee recovered against the pound to 94.07 from last close of 94.67 and also rebounded to 53.02 per 100 Japanese yen from 53.33.

However, continued to rule firm and closed sharply higher at 71.66 per euro from 72.72 previously.

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Pramod Baviskar

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