News Column

Rupee rebounds 21p against dollar to end at 62.22

February 11, 2014


Mumbai: The rupee rebounded by 21 paise to close at 62.22 against the Greenback following fresh dollar selling by exporters and some banks on the back of weak dollar overseas, despite better local stocks and sustained capital outflows.

At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced higher by 62.37 a dollar from last close of 62.43.

It later moved in a narrow range of 62.19 and 62.44 before settling at 62.22, a net rise of 21 paise or 0.34 pct.

Yesterday, it had dropped by 15 paise or 0.24 pct.

The Indian benchmark S&P BSE Sensex today edged up by 29.10 points or 0.14 pct while FIIs continued their selling spree and pulled out $70.38 million yesterday, as per Sebi data. They removed $377.39 million this month so far.

The dollar index was down by 0.13 pct against a basket of six major global rivals, as global investors awaited Janet Yellen's first testimony as new Federal Reserve chair later in the day.

Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said, "Today the Indian shares closed on a positive note also the better than expected trade data numbers helped Rupee to appreciate almost over quarter per cent. Now investors are focusing on the testimony by Janet Yellen to the US Congress later in the day which will affect the emerging markets position the global platform. The trading range for the spot rupee is expected to be within 61.80 to 63.20."

Forward dollar premiums fell back on fresh receipts by exporters.

The benchmark six-month forward dollar premium payable in July eased to 242-246 paise from last close of 244-246 paise.

Far forward contracts maturing in January also declined to 484.5-486.5 paise from 488.5-490.5 paise.

The RBI fixed the reference rate for the dollar at 62.4390 and for the euro at 85.2813.

The rupee recovered against the pound to end at 102.20 from 102.37 and also moved up to 85.01 per euro from 85.10 previously. It bounced back to 60.70 per 100 Japanese yen from 61.10.

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Source: Times of Oman

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