Millennium Post

Rs plunges 52p, recovers to end 7P up at 61.15 per $

The Indian rupee on Friday plunged by 52 paise to five-month low of 61.74 against the dollar with oil prices rising amid geopolitical tensions, but the domestic currency managed to close seven paise higher at 61.15 on suspected RBI intervention in the Forex market.

At the Interbank Foreign Exchange (Forex) market, the rupee commenced sharply lower at 61.64 a dollar from last close of 61.22 and dipped further to a low of 61.74, a fresh 5-month low, on sluggish local stocks and initial dollar demand from importers.

However, it later rebounded to a high of 61.14 before ending at 61.15, a rise of seven paise, or 0.11 per cent. Exporters and some banks also sold dollars towards the fag-end. However, steep fall in domestic equities amid fresh capital outflows restricted the rupee rise to some extent.

‘ session's close, the rupee appreciated on heavy selling of US dollars by banks and exporters. Speculative reports of a central bank intervention and broad dollar weakness also strengthened it,’ Admisi Forex India said.

Pramit Brahmbhatt, CEO, Veracity Group said, ‘The rupee opened low taking cues from weak
 local markets. It traded as low as 61.74 during the day but it recovered as RBI intervention was suspected through state-run banks which supported Rupee and helped it to finally appreciate.’
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