The Indian rupee on Thursday appreciated further by 106 paise to close at 66.01 against the Greenback following strong rally in local equities amid sustained dollar selling by exporters.
Some steps taken by the new Reserve Bank of India (RBI) governor R Rajan on Wednesday remain the key factor in boosting the market sentiment.
To support the rupee, new RBI governor on Wednesday announced steps, such as liberalisation of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident (FCNR) deposits and dollar funds.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced strong at 66.00 a dollar from last close of 67.07 and moved in a range of 65.54 and 66.52 before concluding at 66.01, displaying a rise of 106 paise or 1.58 per cent. On Wednesday, it hs risen by 56 paise or 0.83 per cent.
The dollar index was up by 0.04 per cent against a basket of six major global rivals.Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said,'Today (Thursday) also Rupee gained against dollar, taking cues from strong local equities which closed up by over 2.0 per cent. But still high inflation, growth slowdown and FED quantitative easing fears should see fresh selling in INR, also the high CAD will not see correction any time soon either. To stabilize Rupee we need to focus more on export revenue and inward remittances, until that happens, the central bank can intervene through borrowed funds, but we can't sustain that kind of stability. 'We saw rupee showing a recovery for the second straight session against the US dollar.
The markets were seen welcoming the appointment of new RBI governor Raghuram Rajan.
The monetary measures will be definitely helping the rupee to post gains but at the same time, some strict measures will also be required from the government. A combination of monetary and fiscal measures will help rupee to stabilize. On the data front, we will be closely watching US ADP data, jobless claims and service PMI data which is scheduled for release on Thursday,' said Abhishek Goenka, Founder and CEO, India Forex Advisors.
Forward dollar premiums remained weak on sustained receipts by exporters.The benchmark six-month forward dollar premium payable in February dipped to 229-1/2-234-1/2 paise from Wednesday's close of 250-255 paise Far-forward contracts maturing in August also tumbled to 410-415 paise from 447-452 paise. The RBI fixed the reference rate for the dollar at 66.0430 and for the euro at 86.9940.
Some steps taken by the new Reserve Bank of India (RBI) governor R Rajan on Wednesday remain the key factor in boosting the market sentiment.
To support the rupee, new RBI governor on Wednesday announced steps, such as liberalisation of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident (FCNR) deposits and dollar funds.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced strong at 66.00 a dollar from last close of 67.07 and moved in a range of 65.54 and 66.52 before concluding at 66.01, displaying a rise of 106 paise or 1.58 per cent. On Wednesday, it hs risen by 56 paise or 0.83 per cent.
The dollar index was up by 0.04 per cent against a basket of six major global rivals.Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said,'Today (Thursday) also Rupee gained against dollar, taking cues from strong local equities which closed up by over 2.0 per cent. But still high inflation, growth slowdown and FED quantitative easing fears should see fresh selling in INR, also the high CAD will not see correction any time soon either. To stabilize Rupee we need to focus more on export revenue and inward remittances, until that happens, the central bank can intervene through borrowed funds, but we can't sustain that kind of stability. 'We saw rupee showing a recovery for the second straight session against the US dollar.
The markets were seen welcoming the appointment of new RBI governor Raghuram Rajan.
The monetary measures will be definitely helping the rupee to post gains but at the same time, some strict measures will also be required from the government. A combination of monetary and fiscal measures will help rupee to stabilize. On the data front, we will be closely watching US ADP data, jobless claims and service PMI data which is scheduled for release on Thursday,' said Abhishek Goenka, Founder and CEO, India Forex Advisors.
Forward dollar premiums remained weak on sustained receipts by exporters.The benchmark six-month forward dollar premium payable in February dipped to 229-1/2-234-1/2 paise from Wednesday's close of 250-255 paise Far-forward contracts maturing in August also tumbled to 410-415 paise from 447-452 paise. The RBI fixed the reference rate for the dollar at 66.0430 and for the euro at 86.9940.