Indian rupee rebounds 20p to close over 3-week high Vs US dollar

Aug 22 2014, 18:20 IST
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SummaryThe Indian rupee today rebounded 20 paise to end at over three-week high of 60.47...

Indian rupee today rebounded 20 paise to end at over three-week high of 60.47 against the US dollar following strong local equities and capital inflows.

After falling six paise yesterday, the sentiment was in favour of the rupee today and helped it shrug off a better dollar in overseas markets to log third successive weekly gain.

Exporters preferred to offload dollars head of the US Federal Reserve's annual meet at Jackson Hole today on hopes the Fed may keep interest rate stable at present, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed firm at 60.52 a dollar from previous close of 60.67. It moved in a range of 60.3750 and 60.5650 before closing at 60.47, logging a rise of 20 paise or 0.33 per cent. This is its best close since 60.06 on July 30. Full Coverage: Indian rupee vs US dollar, others

The Indian benchmark S&P BSE Sensex today closed further up by 59.44 points, or 0.23 per cent. The CNX Nifty of NSE hit its new peak on the back of foreign funds inflow.

FIIs infused Rs 412.77 crore yesterday, as per provisional data with the stock exchanges.

The dollar index was up 0.04 per cent against major global rivals.

"Rupee was seen gaining against the USD after Standard & Poor's said efforts to cut the budget deficit are positive for the countryís credit rating. Rupee was seen appreciating in the week as Indian stock markets were seen posting gains.

"Technically, 60.30 is the strong resistance for the rupee. On the upside, a sustained closing below 60.60 will take the rupee further higher," said Abhishek Goenka, Founder and CEO, India Forex Advisors.

In the forward market, premium ended narrowly mixed.

The benchmark six-month premium payable in January closed a tad lower at 220.5-221.5 paise from 221-223 paise while far-forward contracts maturing in July, 2015 finished at 466.5-467.5 from 466-468 paise.

The Reserve Bank of India fixed the reference rate for dollar at 60.4360 and for the euro at 80.3535.

The rupee continued its uptrend against the pound to 100.20 from last close of 100.60 and also moved up further to 58.31 per 100 Japanese yen from 58.44.

It strengthened to 80.24 per euro from 80.45 previously.

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