Rupee up 5 paise on fag-end dollar selling

Written by PTI | Updated: Jun 5 2014, 00:19am hrs
RupeeRupee had lost 45 paise, or 0.76 per cent, in the last four days.
Snapping a four-day losing trend, the rupee today recovered by 5 paise to close at 59.33 against the US currency on fag-end dollar selling by banks and exporters on hopes of good foreign capital inflows into equities.

At the Interbank Foreign Exchange (Forex) market, the local currency resumed lower at 59.40 as against the last closing level of 59.38 and dropped further to 59.48 a dollar.

However, it recovered later to 59.20 per dollar on fag-end selling of dollars by banks and exporters before settling at 59.33 -- a gain of five paise or 0.08 per cent. It hovered in a range of 59.20-59.48 during the day.

Rupee had lost 45 paise, or 0.76 per cent, in the last four days.

Pramit Brahmbhatt, Veracity Group CEO: "Dollar demand from importers forced rupee to trade low initially. However, it recovered at the end. Investors are being watchful ahead of US job data due later today," Veracity Group CEO Pramit Brahmbhatt said.

The dollar index, consisting of six major global units, was up by 0.05 per cent.

In London, the dollar was bobbing near a 3-1/2 month high and shares dipped for a second day today, as the recent jump in US borrowing costs weighed on markets before what is set to be an action-packed ECB meeting.

However, in New York market, the dollar inched down against major rivals yesterday as investors looked ahead to a European Central Bank meeting that is likely to bring additional easing, which could support the case for dollar strengthening in the longer run.

Meanwhile, the BSE benchmark Sensex moved down by 52.76 points, or 0.21 per cent, to 24,805.83.

Meanwhile, premium for forward dollar edged up on fresh payments from banks and corporates.

Far forward contracts maturing in May, 2015 moved up to 476-478 paise from 475.5-477.5 paise yesterday, while the benchmark six-month premium payable in November held steady at 239-241 paise.

The Reserve Bank of India fixed the reference rate for dollar at 59.3360 and for the euro at 80.7640.

The rupee recovered to 99.41 against the pound from 99.43 previously and rebounded to 80.82 per euro from 80.87. It, also regained to 57.82 per 100 Japanese yen from 58.01.