Indian rupee rebounds 26 p vs US dollar to 59.93; logs 1st weekly drop in 3 weeks

Written by PTI | Mumbai | Updated: Jul 11 2014, 23:22pm hrs
Indian rupeeThe Indian rupee resumed lower at 60.25 a dollar from previous close of 60.19 at the Forex market. Reuters
The Indian rupee today bounced back by 26 paise to end at 59.93 versus dollar as exporters and some banks sold the greenback, but steep losses in previous sessions forced the local currency to log its first weekly drop in three.

After ending at 59.72 last Friday, the rupee depreciated 21 paise this week which saw the Narendra Modi government present Railway budget and Union budget.

The rupee today resumed lower at 60.25 a dollar from previous close of 60.19 at the Interbank Foreign Exchange (Forex) market. It declined further to a low of 60.30 on early dollar demand from importers.

Later, the rupee rebounded to a high of 59.92 on renewed dollar selling by exporters and some banks before closing at 59.93, a net rise of 26 paise or 0.43 per cent.

Yesterday, it had tumbled by 44 paise or 0.74 per cent.

On Monday, the local unit had lost 29 paise.

The Indian benchmark S&P BSE Sensex today slumped by 348.40 points, or 1.37 per cent, extending losses for the fourth straight trading day.

FIIs had infused USD 166.01 million yesterday.

Globally, the dollar index was quoting down by a mere 0.01 per cent against its major global rivals.

Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee appreciated backed by dollar selling by corporates. Local equities closed down by almost one and half per cent, which capped the rupee's gain. The trading range for the spot rupee is expected to be within 59.50 to 60.50."

In the week ending June 27, the rupee had gained 10 paise. In the subsequent week (ending July 4), the local currency rose 36 paise on Budget optimism.

"Custodian banks were heard to be suppliers of the Greenback. As a result, the rupee has not depreciated inspite of the sell-off in the domestic equity markets," said Anindya Banerjee, currency analyst, Kotak Securities.

Meanwhile, the premium for forward dollar remained weak on consistent receipts by exporters.

The benchmark six-month premium payable in December declined to 233.5-235.5 paise from 237-237 paise yesterday.

Far-forward contracts maturing in June, 2015 also dipped to 472-474 paise from 479-481 paise.

The Reserve Bank of India fixed the reference rate for dollar at 60.1855 and for the euro at 81.8720.

The rupee recovered against the pound to 102.65 from last close of 102.96 and also recouped to 81.55 per euro from 81.94.

It rose against the Japanese currency to 59.20 per 100 yen from 59.42.