Snapping its 2-day losing streak, the rupee gained 29 paise at 64.83 against the US dollar on fresh selling of the American currency by banks and exporters in view of recovery in equity markets.
The domestic unit opened sharply higher at 64.80 as against Wednesday’s closing level of 65.12 at the Interbank Foreign Exchange (forex) market.
Forex market was closed yesterday for ‘Dussehra’.
During the day, the rupee hovered in the range of 64.95 and 64.77 before settling at 64.83, showing a gain of 29 paise or 0.45 per cent.
The local currency had dropped 32 paise, or 0.49 per cent, in previous two trading days.
The dollar index was traded higher by 0.09 per cent against a basket of six currencies in late afternoon trade.
Globally, the euro fell to its lowest level in two months yesterday after European Central Bank President Mario Draghi all but promised the central bank would expand its programme of quantitative easing at its December meeting.
The trading range for the Spot USD/INR pair is expected to be within 64.40 and 65.20.
Meanwhile, the benchmark BSE Sensex ended higher by 183.15 points, or 0.67 per cent, at 27,470.81. Veracity Group CEO Pramit Brahmbhatt said, “The rupee traded strong and closed at 64.83 for the day. Exporters were seen selling dollars which helped the rupee to trade firm against the dollar.”
Besides, local equities closed on a positive note which further helped the rupee to gain and appreciate by almost half per cent for the day.
In forward market today, the premium for dollar inched up on mild paying pressure from corporates.
The benchmark six-month premium payable in March closed steady at 182-184 paise and for far-forward September, 2016, it inched up to 396-398 paise from 396-397.5 paise on Wednesday.
The RBI fixed the reference rate for the dollar at 64.8815 and for the euro at 72.0639.
The rupee firmed up against the pound sterling to finish at 99.88 from 100.64 previously and also moved up against the euro to 71.98 from 73.92.
The domestic currency ended higher against the Japanese unit to close at 53.71 per 100 yen from 54.26.