The Indian rupee gained by 17 paise to close at 61.69 against the US dollar on fresh selling of the American unit by banks and exporters.
The rupee resumed lower at 62.00 per dollar as against the last weekend’s level of 61.86 and declined further to 62.01 on initial dollar demand from banks and importers.
However, it recovered afterwards to 61.56 on selling of dollars by banks and ended at 61.69 per dollar, showing a gain of 17 paise, or 0.27 per cent, from last weekend’s level.
Meanwhile, FPIs were net sellers of USD 100.74 million in the equity market during the week, as per SEBI data.
Pramit Brahmbhatt, Veracity Group CEO, said,” The rupee moved in a limited range and ended at 61.70 per dollar. FIIs continued to pour money into the debt market and some banks were also seen selling dollars which helped rupee to post its fifth weekly gain in six weeks.
“But RBI is not expected to let the rupee appreciate too much as it would hurt the exports. The trading range for the spot USD/INR pair is expected to be within 61.20 to 62.20 going forward.”
In the forward market, the premium showed a mixed trend due to uneven buying and selling transactions.
The benchmark six-month forward dollar premium payable in July dropped to 219.5-220.5 paise from from the last weekend’s level of 222-224 paise while far-forward contracts maturing in January 2016 rose to 425-427 paise from 421.5-423.5 paise.
The RBI fixed the reference rate for the US dollar at 61.7363 and 70.7868 respectively as against the previous weekend’s level 61.7575 and the euro at 70.0268.
The rupee dropped to 94.61 per pound from from the preceding weekend’s level of 93.33 and also fell to 70.59 per euro from 70.22 previously. It recovered marginally to 52.58 per 100 yen from 52.59 last week.