Re rallies by 85p to 65.70 per $ on Manmohan’s speech
1 Sept 2013 4:51 AM IST
The Indian rupee appreciated further by 85 paise to close at 65.70 against the American unit on sustained dollar selling by exporters and some banks after the central bank on Wednesday took steps to stem the rupee fall.
Rally in local equities for the third straight day amid some weakness in dollar value overseas also gave support to the rupee. While, capital outflows continued to weigh but could not have negative impact on it.
At the Interbank Foreign Exchange (Forex) market, the local currency resumed lower at 67.00 from overnight close of 66.55 and dropped further to a low of 67.43 on initial hesistancy in domestic stocks.
However, it rebounded on dollar selling to settle at the day's high of 65.70, showing a rise of 85 paise or 1.28 pct.
On Thursday, it has spurted by 225 paise or 3.27 pct -the most in at least 15 years. The Reserve Bank of India on 28 August decided to start facility for state-owned oil companies to buy foreign exchange through a special swap window with immediate effect, which relieved the pressure from the Forex market.
The dollar index was down by 0.06 per cent against a basket of six major global currencies.
Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said,'Indian banks borrowed 85.16 bln Rupees via refinance under cbank's FX swap facility taking cues from this today also Rupee continued to trade strong and appreciated almost by 1 percent as the measures taken by the regulators supported the Rupee throughout the day. Indian Central bank was also seen selling dollars twice in a day, via state-run banks which further helped the Rupee. The trading range for the same is expected to be within 65.00 to 66.50.
Rally in local equities for the third straight day amid some weakness in dollar value overseas also gave support to the rupee. While, capital outflows continued to weigh but could not have negative impact on it.
At the Interbank Foreign Exchange (Forex) market, the local currency resumed lower at 67.00 from overnight close of 66.55 and dropped further to a low of 67.43 on initial hesistancy in domestic stocks.
However, it rebounded on dollar selling to settle at the day's high of 65.70, showing a rise of 85 paise or 1.28 pct.
On Thursday, it has spurted by 225 paise or 3.27 pct -the most in at least 15 years. The Reserve Bank of India on 28 August decided to start facility for state-owned oil companies to buy foreign exchange through a special swap window with immediate effect, which relieved the pressure from the Forex market.
The dollar index was down by 0.06 per cent against a basket of six major global currencies.
Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said,'Indian banks borrowed 85.16 bln Rupees via refinance under cbank's FX swap facility taking cues from this today also Rupee continued to trade strong and appreciated almost by 1 percent as the measures taken by the regulators supported the Rupee throughout the day. Indian Central bank was also seen selling dollars twice in a day, via state-run banks which further helped the Rupee. The trading range for the same is expected to be within 65.00 to 66.50.
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