Mumbai: The rupee recovered overnight losses on 20 June and ended at 40.7450/7550 against the US currency, up five paise from previous close of 40.80/81 on expectations of capital inflows thorough the equity market route.
In active trade at the Interbank Foreign Exchange (forex) market, the local currency moved in a limited range of 40.75 and 40.85 after resuming steady at 40.79/80 per dollar. It touched a low of 40.86 around midsession due to heavy dollar demand.
The Indian unit staged a smart recovery in the last one hour of trading and closed in positive territory following dollar selling by some foreign banks, forex dealers said.
Expectations of FII inflows through a mega public offer of Rs 8,750 crore by the country’s largest private lender ICICI Bank boosted the rupee sentiment, they added.
Traders were believed to be building positions in the rupee in anticipation of the portfolio inflows, a leading dealer with a private bank commented.
The rupee also drew support from strong equity market, which rose by another 116 points or 0.81 per cent today.