1. Rupee recovers after hitting over 10-mth low, ends at 62.29 vs dollar

Rupee recovers after hitting over 10-mth low, ends at 62.29 vs dollar

The Indian rupee today fell to over ten-month low of 62.50 against the greenback but bounced...

By: | Mumbai | Published: December 12, 2014 7:32 PM

The Indian rupee today fell to over ten-month low of 62.50 against the greenback but bounced back to end at 62.29 on selling of dollars by state-run banks on behalf of the RBI.

The rise today helped the rupee snap four days of decline where it cumulatively lost 56 paise or 0.91 per cent.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 62.45 a dollar from previous close of 62.33. It touched a low of 62.5050 on sluggish equities and month-end dollar demand from oil firms.

However, a sudden gust of dollar selling by exporters and some banks helped the rupee bounce back to a high of 62.26 before settling at 62.29 — a rise of four paise or 0.06 per cent.

“…towards the end of the session, rupee recovered from lows of the day on speculation that RBI could have intervened in the market through state-run banks by selling dollars,” said Suresh Nair, Director Admisi Forex.

Investors will remain cautious ahead of the India’s November CPI October IIP data both scheduled after market today and Federal Reserve’s policy meet, which will conclude on December 17, he added.

Meanwhile, the Indian stock benchmark S&P BSE Sensex today dipped further by 251.33 points, or 0.91 per cent.

FPIs had sold shares worth USD 98.58 million yesterday, as per Sebi data.

The dollar index, a gauge of six major global rivals, was down by 0.20 per cent.

Pramit Brahmbhatt, Veracity Group, CEO said: “Rupee tried to recover slightly from yesterday’s loss and appreciated by four paise. However, rupee posted a weekly loss. The trading range for the spot rupee is expected to be within 62.00 to 62.60.”

In forward market, premia remained weak on persistent receipts by exporters.

The benchmark six-month premium payable in May moved down to 203.5-205.5 paise from Thursday’s close of 205.5-207.5 paise and forward contracts maturing in November 2015 also softened further to 407-409 paise from 408-410 paise.

The Reserve Bank of India fixed the reference rate for dollar at 62.4422 and for the Euro at 77.3846.

The rupee declined further against the pound to 97.87 from 97.71 previously and also remained weak to end at 52.69 per 100 Japanese yen from 52.56.

However, it recovered to 77.56 per euro from 77.66.

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