Re rally continues, up 77p to 2-week high of 65.24 per $
8 Sept 2013 4:57 AM IST
Continuing its north-bound journey for the third straight day, the Rupee on Friday appreciated by another 77 paise to close at nearly two-week high of 65.24 against the Greenback following strong local equities amid sustained dollar selling by exporters.
Weak dollar overseas amid renewed capital inflows also helped the rupee rise.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced almost stable at 66.00 a dollar from previous close of 66.01 and immediately touched a low of 66.32 on initial hesistancy in local equities.
It later bounced back to a high of 65.00 before settling at 65.24, exhibiting a rise of 77 paise or 1.17 per cent. In straight three days, it has spurted by 239 paise or 3.53 per cent.
The domestic currency had gained 106 paise to close at 66.01 on Thursday against the dollar after steps taken by new RBI Governor Raghuram Rajan to attract US currency inflows.
To support the rupee, RBI announced steps such as enhanced limits for exporters to re-book cancelled forward exchange contracts and a special concessional window to swap foreign currency non-resident (FCNR) deposits. The dollar index was trading lower by 0.04 per cent against a basket of six major global rivals.
Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said,'Rupee continued to gain against dollar, again taking cues from strong local equities which closed up by over 1.50 per cent ahead of key US monthly jobs data later in the day.'
'Market is reacting positively on the steps taken by the new governor, but the key would be the government's intent in addressing the CAD (current account deficit) and subsidy burden at a faster pace amidst positive US data points that might lead to an early exit by Fed's from the stimulus measures. The trading range for the spot USD/INR pair is expected to be within 64.80 to 66.30,' he added.
'During the last three sessions, the rupee has managed to register gains helped by positive measures unveiled by the newly appointed RBI governor. Although, globally, the US dollar index is sustaining at its six week high and the Euro is trading below $1.3150 levels, the rupee is seen holding on to its gains,' said Abhishek Goenka, Founder & CEO, India Forex Advisors.Forward dollar premiums bounced back on fresh payments from banks and corporates.
Weak dollar overseas amid renewed capital inflows also helped the rupee rise.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced almost stable at 66.00 a dollar from previous close of 66.01 and immediately touched a low of 66.32 on initial hesistancy in local equities.
It later bounced back to a high of 65.00 before settling at 65.24, exhibiting a rise of 77 paise or 1.17 per cent. In straight three days, it has spurted by 239 paise or 3.53 per cent.
The domestic currency had gained 106 paise to close at 66.01 on Thursday against the dollar after steps taken by new RBI Governor Raghuram Rajan to attract US currency inflows.
To support the rupee, RBI announced steps such as enhanced limits for exporters to re-book cancelled forward exchange contracts and a special concessional window to swap foreign currency non-resident (FCNR) deposits. The dollar index was trading lower by 0.04 per cent against a basket of six major global rivals.
Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said,'Rupee continued to gain against dollar, again taking cues from strong local equities which closed up by over 1.50 per cent ahead of key US monthly jobs data later in the day.'
'Market is reacting positively on the steps taken by the new governor, but the key would be the government's intent in addressing the CAD (current account deficit) and subsidy burden at a faster pace amidst positive US data points that might lead to an early exit by Fed's from the stimulus measures. The trading range for the spot USD/INR pair is expected to be within 64.80 to 66.30,' he added.
'During the last three sessions, the rupee has managed to register gains helped by positive measures unveiled by the newly appointed RBI governor. Although, globally, the US dollar index is sustaining at its six week high and the Euro is trading below $1.3150 levels, the rupee is seen holding on to its gains,' said Abhishek Goenka, Founder & CEO, India Forex Advisors.Forward dollar premiums bounced back on fresh payments from banks and corporates.
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