The Indian rupee recovered by 13 paise to end at 63.39 against the American currency on fag-end selling of US dollars by banks and exporters.
The rupee resumed lower at 63.57 per dollar as against the yesterday’s closing level of 63.52 at the Interbank Foreign Exchange market and declined further to 63.58 on initial dollar demand from banks and importers on the back of higher greenback overseas in view of fall in crude oil prices.
However, it recovered afterwards to close at 63.39 per dollar on fag-end selling of the US currency by banks and exporters, showing a gain of 13 paise of 0.20 per cent.
It hovered in a range of 63.39 and 63.58 per dollar during the day.
The dollar index was trading lower by 0.15 per cent against its major global rivals today.
Globally, the dollar firmed up against its major rivals in early trade after Greece finally agreed to a debt deal with its creditors, allowing market focus to shift back towards US and European yield differentials.
Oil prices tumbled further in Asia today after the historic nuke deal between Iran and Western powers that would allow Iranian crude to flow back into the already saturated global market.
A strong US currency has also made the dollar-priced commodity more expensive, denting demand, analysts said.
US benchmark West Texas Intermediate for August delivery fell 75 cents to USD 51.45 and Brent crude for August eased 60 cents to USD 57.25 in afternoon Asian trade.
Meanwhile, the Indian benchmark Sensex declined by 28.29 points or 0.10 pct to 27,932.90. Pramit Brahmbhatt, Veracity group CEO, said, “The rupee traded strong and appreciated by over thirteen paise for the day to close at 63.39. The fresh selling of the US currency by exporters and weak dollar supported the rupee movement.”
Though the local equities ended weak for the day which capped the rupee gain. The trading range for the Spot USD/INR pair is expected to be within 63.00 to 63.80.
In the forward market, the premium for dollar declined further on sustained receipts by exporters.
The benchmark six-month premium payable in December moved down to 208-210 paise from 209.5-211.5 paise yesterday and far-forward contracts maturing in June 2016 also moved down to 432-433 paise from 433-434 paise.
The RBI fixed the reference rate for the dollar at 63.4978 and for the euro at 69.7269.
The rupee recovered marginally against the pound sterling to end at 98.76 from 98.79 previously and firmed up further against the euro to 69.90 from 70.33.
It also moved up against the Japanese currency to end at 51.38 per 100 yen as compared to 52.83.