Millennium Post

Re repels FII assault, up 80p to 59.39/$; top gain in 9 months

The Indian rupee witnessed its biggest gain in last nine months, surging by 80 paise to close above 60-mark at 59.39 against the Greenback following sharp surge in domestic equities amid sustained dollar selling by exporters on the back of weak USD overseas.
However, persistent capital outflows were not able to stem the rupee rise.

The rupee commenced at 59.95 a dollar as against previous close of 60.19 at the Interbank Foreign Exchange (Forex) market and immediately touched a low of 60.02.

Later, it rebounded sharply and rallied to a high of 59.21 before settling at 59.39, revealing a rise of 80 paise or 1.33 per cent. On Thursday, it had flared up by 53 paise or 0.87 per cent. Last time, it had gained 93 paise or 1.71 per cent on 21 September, 2012.
The dollar index was down by 0.05 per cent against other major rivals as three Fed officials on Thursday indicated investors had overreacted to recent remarks by Fed Chairman Ben Bernanke signaling tapering of bond purchases.

 Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,'Rupee continued to trade strong against dollar for the second consecutive day taking cues from strong local equity markets which closed up by 2.75 per cent. Trading range for the spot Rupee is expected to be within 59.10 and 59.70.’

‘Currency strategist at Geojite Comtrad, Hemal Doshi  said ‘Pulling back of rupee was mainly driven by sentiment after the announcement of gas price hike and formation of a coal regulator among others by the government. Also, market’s expectation of improved scenario on CAD front on the back of falling gold prices and lesser buying of the yellow metal supported  the currency.’
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