Mumbai: The rupee appreciated against the US currency on 14 June and ended higher at 40.92/93 a dollar, buoyed by expectations of increased capital inflows and positive advices from Asian currencies.
In volatile trade at the Interbank Foreign Exchange (forex) market, the local currency came under pressure during the day after touching a high of 40.80 due to dollar demand from state-owned banks at behest of the central bank.
The rupee moved erratically in a range of 40.80 and 40.97 after resuming at 40.82/85 on the back of a strong surge in equity markets.
The central bank, which has been intervening in the forex market during April, seemed to be making dollar purchases through public sector banks when the rupee rallied to the day’s high, forex dealers said.
The data shows the Reserve Bank of India (RBI) bought over $2 billion during April through intervention in the forex market.
A strong rally on Wall Street on 13 June boosted Asian equity markets, which in turn lifted the benchmark Sensex by over 200 points on 14 June.
Meanwhile, the RBI fixed the reference rate for the US currency at Rs40.84 a dollar and for the single European unit at Rs 54.32 per euro.
The rupee premiums on forward dollar ended lower due to fairly good receivings by exporters.
Benchmark six-month forward dollar premiums payable in November ended at 56-58 paise, lower from 61-63 paise the previous day and the far-forwards maturing in May closed substantially down at 111-114 paise from 119-120 paise previously.
In cross currency trades, the rupee also improved against the British Sterling and the Japanese Yen but eased modestly against the Euro.
The Indian unit recovered moderately against the sterling to Rs80.56/58 per pound from previous close of Rs80.68/70 while it dropped further against the single european currency to Rs54.46/48 per euro from overnight close of Rs 54.41/43.
The rupee also improved against the Japanese unit and closed at Rs33.29/31 per 100 yen from last close of Rs 33.50/52.