Snapping a five-session losing streak, the rupee on Wednesday gained 30 paise to close at 54.55 against the dollar on fresh selling of the US currency by banks and exporters, and hopes of more capital coming into the banking post after Parliament passed Banking Bill. Forex dealers said signs of persistent foreign capital inflows also helped the rupee to bounce back. A sharp recovery in euro against the dollar in the global market also buoyed the local currency, they added. The local currency hovered in a range of 54.51-54.93 at the Interbank Foreign Exchangemarket, before settling at 54.55 against the dollar, a gain of 30 paise, or 0.55 per cent, from its previous close, they added.
Foreign institutional investors (FIIs) bought shares around USD 169.24 million (Rs 922.37 crore) on Tuesday, as per provisional data from the stock exchanges. ‘Sharp recovery in the euro and the falling dollar index helped the rupee to reach the levels of 54.50 during the day. Positive stock markets also lifted the sentiments up. Further, the passing of the crucial Banking Bill which will infuse more capital in the banking sector, boosted the rupee sentiment,’ said Abhishek Goenka, (Founder & CEO, India Forex Advisors).
In London, the euro hit a 16-month high against the yen and 7-1/2 month peak against the dollar on Wednesday, helped by better-than-expected German business confidence data.
‘The INR regained most of its lost ground on exporter and foreign bank selling at higher levels as global optimism over progress in US fiscal cliff boosted the equity markets signalling active risk on sentiments,’ Alpari Financial Services (India) CEO Pramit Brahmbhatt said.
Foreign institutional investors (FIIs) bought shares around USD 169.24 million (Rs 922.37 crore) on Tuesday, as per provisional data from the stock exchanges. ‘Sharp recovery in the euro and the falling dollar index helped the rupee to reach the levels of 54.50 during the day. Positive stock markets also lifted the sentiments up. Further, the passing of the crucial Banking Bill which will infuse more capital in the banking sector, boosted the rupee sentiment,’ said Abhishek Goenka, (Founder & CEO, India Forex Advisors).
In London, the euro hit a 16-month high against the yen and 7-1/2 month peak against the dollar on Wednesday, helped by better-than-expected German business confidence data.
‘The INR regained most of its lost ground on exporter and foreign bank selling at higher levels as global optimism over progress in US fiscal cliff boosted the equity markets signalling active risk on sentiments,’ Alpari Financial Services (India) CEO Pramit Brahmbhatt said.