The Indian rupee today extended gains for the second consecutive session, rising 11 paise against the American currency to 62.70 amid a good show by stocks and on selling of dollars by banks and exporters ahead of the two-day US Fed monetary policy meet.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced better at 62.77 a dollar from last close of 62.81.
It then moved in a range of 62.67 and 62.78 before finishing at 62.70 per dollar, showing a gain of 11 paise or 0.18 per cent. The rupee has gained by 27 paise or 0.43 per cent in the two days.
Veracity Group, CEO, Pramit Brahmbhatt said: “Rupee traded strong for the day. Exporters and banks were seen selling dollars which supported rupee….Also, local equities traded strong which helped the rupee movement.”
The trading range for the spot USD/INR pair is expected to be within 62.35 to 63.15, he added.
In London, the dollar was almost flat against the yen today ahead of a closely monitored Federal Open Market Committee meeting in the U.S.
The dollar rally paused overseas after possibility that weaker-than-expected US data will prompt the Federal Reserve to adopt a cautious stance. Outcome of the policy meeting will be released on Wednesday.
According to data, manufacturing struggled in February, holding back overall industrial production that rose by a mere 0.1 percent in the month. Reports on homebuilder sentiment and regional manufacturing also were weaker than expected.
The dollar index, a gauge of six major global rivals, was down by 0.08 per cent today.
Meanwhile, the Indian benchmark Sensex ended higher by 298.67 points, or 1.05 per cent, at 28,736.38.
Meanwhile, the forward premia dropped further on sustained receipts by exporters.
The benchmark six-month premium payable in August moved down to 217.5-218.5 paise from yesterday’s closing level of 218-220 paise. The forward contracts maturing in February 2016 ended almost stable at 434-435 paise as against the last close of 433.5-435.5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 62.6920 for Euro at 66.3720.
The rupee continued to remain firm against the pound to 92.51 as against 92.86 yesterday and also ended higher against Japanese yen at 51.71 per 100 yen as against 51.79 yesterday.
However, it fell against the euro to 66.47 per euro from 66.16 per euro previously.