Friday, July 23, 2010

Rupee rises 19 paise to 46.93/94 against dollar

The rupee on Friday gained 19 paise to close below Rs 47 against the US dollar as exporters sold the American currency amid a positive trend in domestic equity markets and dollar weakness overseas.

The domestic currency concluded the day at 46.93/94 per dollar after opening on a strong note at 46.95/96 a dollar on the Interbank Foreign Exchange, compared with the previous close of 47.12/13 per dollar.

Forex dealers attributed the initial firmness in the rupee to a rally in local equities, with the BSE benchmark Sensex up by over 124 points just after the onset of business.

Profit-taking in the afternoon pulled the Sensex down into the negative terrain, which saw the rupee also touch a low of 47.07 a dollar. But a late recovery in stocks later in the day helped the local unit to rebound to a high of 46.8925 before closing 19 paise higher against the US dollar.

The dollar selling by exporters on expectations of a further decline in the value of the American currency supported the rupee’s rise.

In the New York market on Thursday, the dollar fell against the euro and other major currencies as US corporate and housing reports supported equities and reduced demand for the American currency. Meanwhile, global crude oil was trading below $79 a barrel in London on Friday.

The rupee premium for the forward dollar ended slightly lower on stray receivings by exporters. The benchmark six-month forward dollar premium payable in December eased to 86-1/2-88 paise from 87/89 paise on Thursday and far-forward maturing in June also softened to 157-159 paise from 158-160 paise previously.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 47.00 and for the euro at Rs 60.53.
In cross currency trade, the domestic unit remained weak against the pound sterling and the euro, but recovered against the Japanese yen.

The rupee declined further against the pound sterling to end at Rs 72.41/43 per pound from Thursday’s close of Rs 72.00/72.02. It also slipped to Rs 60.62/64 against the euro from Rs 60.61/63 previously. It, however, rebounded to Rs 53.83/85 per Y100 from its last close of Rs 54.30/32.

ET

No comments: