News Column

Re appreciates further by 10p to end at 62.41

January 29, 2014


Mumbai : The rupee appreciated further by 10 paise to close at 62.41 against the Greenback following USD selling by exporters amid sustained capital outflows, extending gains for the second straight day. Weak dollar overseas ahead of the outcome of the US Federal reserve's decision QE tapering in its two-day monetary policy meet later in the day. The dollar index was down by 0.10 pct against a basket of major global rivals. At the Interbank Foreign Exchange ( Forex ) market, the local unit resumed strong at 62.28 a dollar from last close of 62.51 and rallied further to a high of 62.1050 on initial rise in domestic stocks. It later fell back on dollar demand from importers, mainly oil refiners, to meet their month-end requirements to a low of 62.52 before settling at 62.51, a rise of 10 paise or 0.16 pct. Yesterday, it has shot up by 59 paise or 0.94 pct. The Indian benchmark S&P BSE Sensex today washed out initial gains on late profit-booking and closed down by 36.21 points or 0.18 pct while FIIs extracted $212.62mn yesterday from equities as per Sebi data. Pramit Brahmbhatt , CEO, Alpari Financial Services , India said, "Rupee extended its gain today and traded near 62.00 levels but during the day it lost its way and ended with a small change as overall signs of improvement in the US economy suggest Fed officials will stay on track to cut monthly purchases, which has already incurred sharp losses in emerging market assets over the past week. The trading range for the USD/INR pair is expected to be within 62.00 to 63.00." "After seeing a good amount of appreciation yesterday, rupee was seen continuing with the same during initial hours. But later the Indian currency started weakening amid dollar buying in the local market by large corporate. Some portion of the weakness can also be attributed to the rising talks about $10bn reduction in the asset purchase programme at the FOMC meet which will end today. After the RBI policy, the FOMC meeting will be the most significant event which will be giving a direction to the USD-INR pair," said Abhishek Goenka , Founder and CEO, India Forex Advisers. Forward dollar premiums closed weak on fresh receipts from exporters. The benchmark six-month forward dollar premium payable in June ended down at 211-213 paise from 213-215 paise previously. Far forward contracts maturing in December dropped to 456-1/2 - 458-1/2 paise from 460-1/2 - 462-1/2 paise . The RBI fixed the reference rate for the dollar at 62.2005 and for the euro at 84.9649. The rupee improved further to 103.31 against the pound from last close of 103.59 and also edged up to 85.25 per euro from 85.33. It, however, fell back to 60.77 per 100 Japanese yen from 60.63.

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Source: Times of Oman

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