The rupee today came back strongly against the US currency by surging 17 paise to close at a two-week high of 64.44 on heavy dollar selling by exporters and banks. The domestic currency was further supported by the unwinding of long dollar positions by speculators against the backdrop of rising risk-on sentiment.
The home unit resumed firmly higher at 64.55 from last weekend’s closing value of 64.61 at the Interbank Foreign Exchange market owing to smooth supply of dollars. Maintaining its strong edge over greenback, the rupee touched a fresh intra-day high of 64.43 in late afternoon deals before ending at 64.44, showing a smart gain of 17 paise or 0.26 per cent. Today’s rupee closing was the highest since April 14, when it closed at 64.41. The RBI, meanwhile, fixed the reference rate for the dollar at 64.4757 and for the euro at 69.9884.
In worldwide trade, the US dollar traded lower against most major world currencies ahead of key macro data this week for clarity on the Federal Reserve’s interest rate policy. The dollar index, which tracks the US currency against a basket of six major rivals, was sharply down by 0.77 percent at 98.95.
In cross-currency trade, the local unit fell back against the pound sterling to settle at 82.61 from 82.55 per pound and also retreated against the euro to finish at 69.95 compared to 69.16 earlier.
The domestic currency, however, bounced back sharply against the Japanese Yen to finish at 58.45 per 100 yens from 59.23 yesterday.
Meanwhile, country’s forex kitty rose by USD 889.4 million to USD 369.887 billion in the week ended April 14, helped by an increase in foreign currency assets, the Reserve Bank said. They had declined by USD 956.4 million to USD 368.998 billion in the previous reporting week.
In the forward market today, the premium for dollar declined modestly owing to persistent receivings from exporters. The benchmark six-month premium for September softened to 143-145 paise from 144-146 paise and the far-forward March 2018 also eased to 303-305 paise from 303.5-305.5 paise last weekend.
You may also like to watch:
In equities, benchmark Sensex, buoyed by robust earnings outcome amid global rally, saw a smart rebound of 291 points, its biggest single-session gain in nearly 6 weeks, and ended at a fresh two-week high of 29,656, while Nifty jumped over 98 points to 9,217.95. Healthy FII inflows into equities and debt also supported the recovery momentum. Foreign investors pumped in a staggering USD 3 billion in the capital markets this month so far as regulator Sebi has raised investment limit for FPIs in government debt. According to the depository data, FPIs infused a net sum of Rs 1,132 crore in equities during April 3-21 and another Rs 17,758 crore in the debt segment, translating into a combined inflow of Rs 18,890 crore (US 2.91 billion).
Total market valuation of BSE- listed companies hit a record high of over Rs 124 lakh crore in line with a strong broader market sentiment where the benchmark Sensex rebounded 291 points. At the close of trade today, the market capitalization of BSE-listed companies surged to Rs 1,24,41,895 crore. The 30-share Sensex settled up 290.54 points, or 0.99 percent, at 29,655.84.
“… domestic markets were facilitated by a relief in the global market due to a favourable outcome in French presidential result” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
From the 30-share basket, 21 ended with gains led by GAIL, Axis Bank and L&T. Among BSE sectoral and industry indices, realty rose the most by 3.02 per cent followed by capital goods (1.66 percent). On BSE, 1,608 stocks advanced while 1,280 declined and 184 remained unchanged. As many as 290 stocks hit their 52-week high on BSE.
In the global commodity front, crude prices recovered some lost ground on Monday on expectations that OPEC will extend output cuts until the end of 2017, although a relentless rise in US drilling capped gains. Brent crude futures rose 42 cents to USD 52.38 per barrel, while the US West Texas Intermediate (WTI) crude oil futures also added 42 cents to trade at USD 50.04 a barrel.