Rupee reverses early gains, down one paisa at 55.53 against dollar

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SummaryThe rupee on Monday reversed early gains and ended lower by a mere paisa at 55.53 against the dollar on capital outflows from shares and a stronger American currency overseas.

The rupee on Monday reversed early gains and ended lower by a mere paisa at 55.53 against the dollar on capital outflows from shares and a stronger American currency overseas.

The rupee commenced higher at 55.44 a dollar from last Friday’s close of 55.52 at the Interbank Foreign Exchange Market. Thereafter, it immediately touched a high of 55.41 on early rise in domestic equities amid dollar selling by exporters. However, the rupee lost momentum and fell back on dollar demand from importers and weakness in local stocks. It touched a low of 55.60 before ending at 55.53, a drop of one paisa over Friday’s closing. Last Friday, it had risen by 11 paise or 0.2%.

The dollar index recovered some of the lost ground against its major rivals and was up by 0.03 % after Federal Reserve chairman Ben Bernanke last week hinted at another round of monetary stimulus but offered no details on the timing of any measures.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, “The rupee reversed its intra-day gains towards the fag end of the day’s session after a dismal performance by the equity markets due to grim economic outlook and range-bound global markets with some positive bias as the US market is closed on Monday for Labour Day.”

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