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Business News/ Market / Stock-market-news/  Rupee surges on strong dollar inflows, tests 60.54 before closing at 60.63
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Rupee surges on strong dollar inflows, tests 60.54 before closing at 60.63

The rupee opened at 61.07 against its Wednesday's close of 61.09

The rupee rose about 0.8% in the afternoon trade to test a level of 60.54 against the dollar after two large corporations brought in substantial dollar inflows into the market. Photo: Mint Premium
The rupee rose about 0.8% in the afternoon trade to test a level of 60.54 against the dollar after two large corporations brought in substantial dollar inflows into the market. Photo: Mint

Mumbai: The Indian rupee surged against the US dollar from near steady levels on Friday, due to dollar inflows into the market and the absence of any significant dollar demand from oil companies—buyers in the past few sessions.

The partially convertible currency rose about 0.8% in the afternoon trade to test a level of 60.54 against the dollar after opening marginally lower and trading largely steady till noon after two large corporations brought in substantial dollar inflows into the market, currency dealers said.

“It looks like there were some strong corporate inflows towards noon. This, coupled with the absence of demand seems to have aided the rupee," Sandip Kumar, senior forex dealer at FirstRand Bank Ltd, said.

The rupee closed at 60.63, up 0.76% from its previous close. The unit opened at 61.07 against its Wednesday’s close of 61.09. India’s benchmark index, Sensex fell 0.82% to 22,688.07 points.

Since the beginning of this year, the rupee has gained 1.94%, while foreign institutional investors (FIIs) have bought $4.87 billion during the period from local equity markets.

“The rupee has been strengthening of late. The only aberration was in the last few days, when there was some dollar buying," said Satyajit Kanjilal, managing director of Forexserve, a currency consultant.

“Since that seems to be over, the unit is returning to its normal course," he said. Kanjilal expects the local currency to continue to strengthen.

The yield on India’s 10-year benchmark bond ended at 8.888%, compared with its Wednesday’s close of 8.851%. Bond yields and prices move in opposite directions.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.721, down 0.1% from the previous close of 79.799.

Markets were closed on Thursday due to Lok Sabha elections in Mumbai.

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Published: 25 Apr 2014, 09:38 AM IST
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