Weekly review: Indian rupee snaps 4-week loosing streak against US dollar

Written by PTI | Mumbai | Updated: Jun 28 2014, 21:40pm hrs
Indian rupeeThe rupee resumed higher at 60.10 per dollar as against the last weekend's level of 60.18 per dollar at Forex. (Reuters)
The Indian rupee snapped its four-week losing streak by recovering 10 paise to end at 60.08 against the American currency on fresh selling of dollars by banks and exporters in view of good foreign capital inflows into equity market.

The rupee resumed higher at 60.10 per dollar as against the last weekend's level of 60.18 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 60.05 per dollar before ending the week at 60.08 per dollar, showing a gain of 10 paise, or 0.17 per cent.

It hovered in a range of 60.05 per dollar and 60.3850 during the week.

It had lost 166 paise or 2.84 per cent in the previous four weeks.

The benchmark S&P BSE-Sensex closed the week slightly lower by 5.59 points or 0.02 per cent.

Pramit Brahmbhatt, Veracity Group CEO, said," The rupee traded sideways throughout the week though eventually it appreciated slightly to end the week. After falling for four weeks, the rupee traded strong as FIIs were the net buyers of the shares worth Rs 162 crores till Thursday which helped Rupee to trade slightly strong."

"The rupee gain was capped as local equities continued to trade weak for the third week in a row taking cues from growing tensions in Iraq. Now Investors are waiting for the budget, scheduled on 10th July which will show the road ahead to the Indian markets".

Forward dollar premiums dropped on fresh receipts by exporters.

The benchmark six-month forward dollar premium payable in November declined to 215.5-217.5 paise from last weekend's level of 223-225 paise and far-forward contracts maturing in May 2015 also moved down to 467.5-469.5 paise from 469-471 paise.

The RBI fixed the reference rate for the USD at 60.0958 and the Euro at 81.8820 from 60.2785 and 82.1200 previously.

The rupee recovered against the pound Sterling to end at 102.29 from preceding weekend's close of 102.52, while remained weak against the euro to finish at 81.80 from 81.75.

It too dropped further against the Japanese yen to 59.31 per 100 yen from last weekend's close of 58.97.