Rupee rises 59p to end at 62.51 per $ on emerging markets rebound
29 Jan 2014 11:18 PM GMT
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 63.15 a dollar from previous close of 63.10, weakest in ten weeks. It immediately touched a low of 63.18 on weak global and domestic cues.
However, it later logged a high of 62.50 on dollar selling, before concluding at 62.51, a rise or 59 paise or 0.94 per cent — the biggest daily gain since vaulting 70 paise, or 1.11 per cent, on 18 November, 2013.
In the past three sessions, the rupee had plunged by 129 paise or 2.09 per cent in line with a rout in emerging market currencies and fears of US Fed further trimming stimulus.
‘Demand from FIIs for dollar was not seen today. Globally, also we saw some stability in the market. Although the RBI hiked repo rate by 0.25 per cent this time but it seems they are done for now,’ Agam Gupta, managing director and head of fixed income trading, Standard Chartered Bank.
On Monday, heavy selling by foreign institutional investors (FIIs) had kept the rupee under pressure. FIIs sold shares worth Rs 1,334.21 crore on Monday. The dollar index, consisting of six major global rivals, was up by 0.20 per cent ahead of the US Federal Reserve two-day meeting to discuss a further reduction in stimulus.
Globally, the yen slid against all of its 31 major peers as emerging market currencies like Turkey's lira strengthened. Meanwhile, forward dollar premiums ended narrowly mixed. The benchmark six-month forward dollar premium payable in June finished a tad lower at 213-215 paise from 213.5-215.5 paise previously. Far forward contracts maturing in December, however, rose to 460-1/2-462-1/2 paise from 459-461 paise.
The RBI fixed the reference rate for the dollar at 62.9898 and for the euro at 86.1715. The rupee recovered sharply to 103.59 against the pound from 104.39 previously and rebounded to 85.33 per euro from 86.32.
Sensex tame, down 24 pts
MUMBAI: The benchmark Sensex on Tuesday fell for the third straight day and ended 24 points lower after the Reserve Bank of India (RBI) surprised investors with a rate hike. After a higher start, the Bombay Stock Exchange Sensex plunged to the day’s low of 20,554.28 soon after RBI Governor Raghuram Rajan hiked the repo rate by 0.25 per cent in a bid to curb inflation. The 50-share National Stock Exchange Nifty index declined 9.60 points to end at 6,126.25.
However, it later logged a high of 62.50 on dollar selling, before concluding at 62.51, a rise or 59 paise or 0.94 per cent — the biggest daily gain since vaulting 70 paise, or 1.11 per cent, on 18 November, 2013.
In the past three sessions, the rupee had plunged by 129 paise or 2.09 per cent in line with a rout in emerging market currencies and fears of US Fed further trimming stimulus.
‘Demand from FIIs for dollar was not seen today. Globally, also we saw some stability in the market. Although the RBI hiked repo rate by 0.25 per cent this time but it seems they are done for now,’ Agam Gupta, managing director and head of fixed income trading, Standard Chartered Bank.
On Monday, heavy selling by foreign institutional investors (FIIs) had kept the rupee under pressure. FIIs sold shares worth Rs 1,334.21 crore on Monday. The dollar index, consisting of six major global rivals, was up by 0.20 per cent ahead of the US Federal Reserve two-day meeting to discuss a further reduction in stimulus.
Globally, the yen slid against all of its 31 major peers as emerging market currencies like Turkey's lira strengthened. Meanwhile, forward dollar premiums ended narrowly mixed. The benchmark six-month forward dollar premium payable in June finished a tad lower at 213-215 paise from 213.5-215.5 paise previously. Far forward contracts maturing in December, however, rose to 460-1/2-462-1/2 paise from 459-461 paise.
The RBI fixed the reference rate for the dollar at 62.9898 and for the euro at 86.1715. The rupee recovered sharply to 103.59 against the pound from 104.39 previously and rebounded to 85.33 per euro from 86.32.
Sensex tame, down 24 pts
MUMBAI: The benchmark Sensex on Tuesday fell for the third straight day and ended 24 points lower after the Reserve Bank of India (RBI) surprised investors with a rate hike. After a higher start, the Bombay Stock Exchange Sensex plunged to the day’s low of 20,554.28 soon after RBI Governor Raghuram Rajan hiked the repo rate by 0.25 per cent in a bid to curb inflation. The 50-share National Stock Exchange Nifty index declined 9.60 points to end at 6,126.25.
Next Story
