Millennium Post

Rs spurts 40p to 1-week high of 63.17 per $

Downbeat factors like sluggish Indian stock markets, fresh capital outflows amid firm dollar overseas could not able to stem the rupee rise, a forex dealer said. The rupee commenced better at 63.51 a dollar from last close of 63.57 but fell back to the day's low of 63.56 on some weakness in local equities amid strong USD overseas on hopes of early rise in key interest rates to be likely announced in Wednesday’s Fed's release of minutes of the Federal Open Market Committee meeting held on December 16 and 17, 2014.

It later rebounded sharply to a high of 63.15 on fresh dollar selling by exporters and some banks before settling at 63.17, a smart rise of 40 paise or 0.63 pct. In last two days, it had dropped by 28 paise or 0.44 per cent.

FPIs pulled out $242.04 million on Tuesday, as per Sebi data. The dollar index was up by 0.20 per cent against its major global rivals.

Pramit Brahmbhatt, Veracity Group CEO said,"Rupee appreciated over half percent today, as depreciated rupee attracted exporters and some banks which helped Rupee to gain and trade strong for the day against elevated dollar. Local equities closed on a weak note which dented the rupee appreciation. The trading range for the spot rupee is expected to be within 62.80 to 63.50." 

Meanwhile, premia softened further on sustained receipts by exporters. The benchmark six-month premium payable in June eased to 21.5-223.5 paise from 222.5-224.5 paise on Tuesday. Premium on forward contracts maturing in December also declined to 424-426 paise from 426.5-428.5 paise.

After Tuesday turmoil, Sensex down 79

A day after Tuesday’s crash, the benchmark Sensex  on Wednesday languished in the red for most of the session and closed 79 points down at three-week low on losses in bluechips, including ICICI Bank and Hindalco, amid continued capital outflows.

The NSE Nifty barometer ended with a loss of 25.25 points at 8,102.10 — also its weakest close since December 17, 2014. Despite positive closing in Asian indices and rebound in European shares, domestic markets buckled under selling by foreign funds as global crude oil prices continued to fall.

TCS, Tata Motors, ITC, ICICI Bank and Hindalco were among key Sensex constituents that fell between 1-3 per cent today. However, some buying was seen in battered oil & gas stocks.

Heavyweight RIL and ONGC gained about 2 per cent each after falling 4-5 per cent on Tuesday. 

Concerns over global growth following slide in crude oil prices below $50 per barrel level and possible exit of Greece from Euro region kept investors jittery.
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