Rupee recovers 14 ps against dollar to 53.77 on rate cut
30 Jan 2013 4:17 PM IST
Contrary to fall in local equities, the rupee recovered by 14 paise to close at 53.77 against the Greenback as the central bank on Tuesday cut key policy rates and CRR by 25 basis points to boost the sagging economy. Fresh dollar selling by exporters and consistent capital inflows too helped the rupee rise, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 53.96 a dollar from overnight close of 53.91 and immediately touched a low of 53.97.
Later, it bounced back after the release of monetary policy to a high of 53.54 before losing some ground on weak equities to settle at 53.77, still showing a rise of 14 paise or 0.26 pct.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,’The RBI finally bite the bullet after a nine month long wait by taking up a 25bps point rate cut across all key rates such as Repo, reverse Repo and CRR. The repo rate cut was widely anticipated by the markets but the rate cut in reverse Repo and CRR is something which the markets enjoyed though for a short while due to weak rupee fundamentals and rising demand for dollars.’ ‘The Equity markets reversed their afternoon gains as the RBI displayed more concerns of Inflation and stressed the need for more policy reforms by the government to support growth in economy,’ he added.
‘The rupee was seen trading in the range of 43 paise. Rupee appreciated against the US dollar after the RBI announced a cut in the repo rate and the CRR. The rupee could not sustain the gains for long and going ahead we do not expect much appreciation in rupee,’ said Mr. Abhishek Goenka, Founder and CEO, India Forex Advisors.
The premium for the forward dollar improved further on sustained from banks and corporates. The benchmark six-month forward dollar premium payable in June ended better at 157-159 paise from Monday’s close of 156-158 paise. Far-forward contracts maturing in December also rose to 317-1/2-319-1/2 paise from 315-1/2-317-1/2 paise.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 53.96 a dollar from overnight close of 53.91 and immediately touched a low of 53.97.
Later, it bounced back after the release of monetary policy to a high of 53.54 before losing some ground on weak equities to settle at 53.77, still showing a rise of 14 paise or 0.26 pct.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,’The RBI finally bite the bullet after a nine month long wait by taking up a 25bps point rate cut across all key rates such as Repo, reverse Repo and CRR. The repo rate cut was widely anticipated by the markets but the rate cut in reverse Repo and CRR is something which the markets enjoyed though for a short while due to weak rupee fundamentals and rising demand for dollars.’ ‘The Equity markets reversed their afternoon gains as the RBI displayed more concerns of Inflation and stressed the need for more policy reforms by the government to support growth in economy,’ he added.
‘The rupee was seen trading in the range of 43 paise. Rupee appreciated against the US dollar after the RBI announced a cut in the repo rate and the CRR. The rupee could not sustain the gains for long and going ahead we do not expect much appreciation in rupee,’ said Mr. Abhishek Goenka, Founder and CEO, India Forex Advisors.
The premium for the forward dollar improved further on sustained from banks and corporates. The benchmark six-month forward dollar premium payable in June ended better at 157-159 paise from Monday’s close of 156-158 paise. Far-forward contracts maturing in December also rose to 317-1/2-319-1/2 paise from 315-1/2-317-1/2 paise.
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