The Indian rupee snapped its two-week losing streak against the US currency, recovering 51 paise to 62.46 per dollar on fresh selling of dollars by banks and exporters.
The rupee resumed slightly lower at 62.98 per dollar as against the last level of 62.97 per dollar at the Interbank Foreign Exchange (Forex) Market on initial dollar demand from banks.
However, it recovered to 62.35 per dollar on selling of dollars by banks and exporters in view of good foreign capital inflows before ending at 62.46 per dollar, showing a gain of 51 paise or 0.81 per cent.
It hovered in a range of 62.35 per dollar and 62.99 per dollar during the week. It had dropped by 114 paise or 1.84 per cent in the last two weeks.
Foreign Portfolio Investors (FPIs) continued to invest in equity shares as they bought net USD 106.77 millions in the four days of the week as per Sebi’s data.
Pramit Brahmbhatt, Veracity Group, CEO said, “Last week Rupee traded strong and appreciated after trading low for consecutive two weeks. Rupee appreciated … taking cues from dollar inflows and constant selling of dollars by exporters”.
The trading range for the Spot USD/INR pair is expected to be within 62.00 to 63.00, Brahmbhatt said.
Forward dollar premium ended mixed due to uneven demand and supply transactions from forex dealers.
The benchmark six-month forward dollar premium payable in August moved down to 215-217 paise during the week from 222.5-224.5 paise from the last weekend’s level while far- forward contract maturing in February 2016 moved up to 441-443 paise from 439-441 pasie previously.
The RBI fixed the reference rate for the US dollar at 62.4923 and Euro at 66.8043 from last weekend’s level of 62.6733 and 66.4212 respectively.
Meanwhile, the rupee continued to rule frim against the pound sterling to end the week at 92.12 from last Friday’s level of 93.33 while fell to 66.79 per euro from 66.66 per euro last week.
It, however, recovered to 51.59 per 100 Japanese yen from preceding weekend’s level of 51.85.