Indian rupee continues to rule at 1-month high to 61.75 vs US dollar

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The Indian rupee continued to rule at a one-month high, firming up another 30 paise to 61.75 against the US dollar (Reuters) The Indian rupee continued to rule at a one-month high, firming up another 30 paise to 61.75 against the US dollar (Reuters)
SummaryIndian rupee continued to rule at a one-month high, firming up another 30 paise to 61.75 against the US dollar today, after exit polls predicted a strong showing by the BJP in the recently concluded assembly elections.

Indian rupee continued to rule at a one-month high, firming up another 30 paise to 61.75 against the US dollar today, after exit polls predicted a strong showing by the BJP in the recently concluded assembly elections.

The US currency also advanced as US dollar supplies improved on overseas inflows into local stocks, including the Power Grid Corp follow-on offer, and sales by banks and exporters amid a strong local equity market.

The Indian rupee resumed higher at 61.75 from the previous close of 62.05 per US dollar at the interbank foreign exchange market and firmed up further to 61.53. After hovering in a range of 61.53 to 61.90, it ended at 61.75, a gain of 30 paise or 0.48 per cent. This is the highest level since November 5.

The Indian rupee opened strong today, tracking exit poll results which favoured the BJP. Investors feel if the BJP comes to power, it will help the markets, an analyst said. Inflows to the tune of USD 250-300 million for Power Grid shares also helped the rupee, the analyst said.

The Power Grid follow-on public offer was subscribed 4.77 times on the third day today.

Overseas investors bought a net Rs 52.11 crore of shares yesterday, according to provisional stock exchange data.

The 30-share benchmark Sensex rose 249.10 points, or 1.2 per cent, to finish at 20,957.81.

"Taking cues from this, rupee appreciated more than 50 paise during the day and closed on a positive note," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).

Forward dollar premiums eased on fresh receipts from exporters.

The benchmark six-month forward dollar premium payable in May moved down to 244-1/2 to 246-1/2 paise from 246-1/2 to 248-1/2 paise previously and far-forward contracts maturing in November softened to 478-481 paise from 480-1/2 to 482-1/2 paise.

The RBI fixed the reference rate for the dollar at 61.6895 and for the euro at 84.0690.

The Indian rupee remained firm at 101 per pound as against 101.58 yesterday and hardened further to 83.92 against the euro from 84.33.

It, however, fell to 60.54 per 100 Japanese yen from 60.51.

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