Rupee strengthens against dollar

Rupee strengthens against dollar
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First Published: Fri, Jul 03 2009. 10 20 PM IST
Updated: Fri, Jul 03 2009. 10 20 PM IST
Mumbai: The Indian rupee recovered from early losses and ended marginally higher by five paise to 47.89/91 against the dollar on hopes of persistent capital inflow from foreign institutional investors (FII) in view of rising trends in equity markets.
The stock market spiralled upwards after the presentation of the Railway Budget with the benchmark Sensex soaring by 255 points on heavy buying by foreign funds and partial recovery in global stocks.
Market sentiment was boosted by intra-trade recovery in Asian and European stocks. Disappointing US jobs data weighed on the global stocks.
FIIs have been net buyers, albeit in moderate quantity, in equity this week and bought shares worth $387 million between 29 June and 3 July.
The domestic unit resumed lower at 48.10/12 against its last close of 47.94/95 a dollar and later fell further to a day’s low of 48.19 before ending higher at 47.89/91 a dollar.
Dealers at the interbank foreign exchange market said banks bought dollars as it improved against the euro in overseas markets.
However, the euro edged higher in the London market against the dollar, correcting after sharp falls late in the previous session in the wake of bleak US job numbers, which dampened hopes of global economic recovery.
Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs47.99 and for the euro at Rs67.25.
The rupee premiums on the forward dollar showed a mixed trend due to uneven demand and supply transactions.
The benchmark six-month forward dollar premium payable in December ended at 58-1/2-60-1/2 paise, eased from 59-1/2-61-1/2 paise on Thursday while the far-forwards maturing in June finished slightly higher at 108-1/2-110-1/2 from 107-1/2-109-1/2 paise previously.
In cross-currency trade,the rupee firmed up against the pound sterling and the euro while it declined against the yen.
The domestic currency advanced against the pound sterling to end at Rs78.37/39 from the overnight closing level of 78.55/57 and recovered against the euro to Rs67.05/07 from 67.41/43 previously.
However,the Indian rupee also moved down further against the Japanese Yen to Rs49.92/94 per 100 yen from the previous closing level of Rs49.60/62 per 100 yen.
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First Published: Fri, Jul 03 2009. 10 20 PM IST
More Topics: Rupee | Dollar | Currency | Sensex | Stocks |