Rupee rises to 50.88; sheds 3.68% in March

Written by Agencies | Updated: Mar 31 2012, 06:32am hrs
Paring all previous losses, the rupee on Friday gained 53 paise to close at 50.88 against the dollar as the stock market recovered, following government's assurance that it will not tax equity investments through participatory notes (P-Notes).

The rupee suffered the worst fall in four months, shedding 3.68% in March.

Besides, fresh dollar selling by exporters amid bearish cues from overseas forex markets also aided the rupee's value, dealers said.

At the Interbank Foreign Exchange (Forex) market, the local unit touched a low of 51.30 in the intra-day before ending at 50.87/88, a gain of 53 paise, or 1.03% from its previous close. The rupee had touched an 11-week low of 51.40/41 on Thursday.

The dollar index was remarkably down by almost 0.4% against its major rivals while New York crude oil was trading above $103 a barrel in European market today.

The government securities (G-Sec) continued to rule mixed on alternate bouts of buying and selling while call rates flared up further at the Overnight call money market today on month-end as well as year-end needs by borrowing banks amid short of supply in bankin system. The 8.79 per cent (G-Sec) maturing in 2021 improved further to R101.39.