Rupee recovers 29 paise against a dollar
Sunday, 16 November 2008
MUMBAI, Nov 15 (PTI): The Indian rupee yesterday gained 29 paise to close at 49.01/02 against the greenback, after losing nearly 200 paise in the past two days .
Dealers in forex exchange said the domestic currency in sync with local stocks remained under pressure for most of the day before bouncing at the fag end on better availability of dollar. Rupee in the past two days had lost 192 paise mainly because of the shortage of the U.S. currency while the demand particularly sound, they added.
According to official data, F.D.I. inflows have more than doubled to USD 17.21 billion during April-September this year compared to USD 7.25 billion in the same peiod in 2007. The increase in F.D.I. inflows have raised expectations of more inflows in the second half of the fiscal, which also helped rupee gain Friday.
Traders said had it not been for weak equity markets, the rupee would have recovered a major part of its overnight losses.
In volatile trade at the Interbank Foreign Exchange (forex) market Friday, the domestic currency moved between 49.49 and 48.95 during the day.
Indian benchmark Sensex Friday ended lower by 151 points or 1.58per cent, while Asian indices registered gains.
Meanwhile, the Reserve Bank of India fixed the reference rate for dollar at Rs 49.46 and for the single European currency at Rs 62.96.
The rupee premiums on forward dollar ended lower on sustained receiving by exporters.
The benchmark six-month forward dollar premium payable in April ended at 50-1/2 - 52-1/2 paise, down from 58 - 61 paise Wednesday and fast-forward maturing in October also finished lower at 73 - 75 paise from 86 - 89 paise previously.
In cross-currency trades, the rupee recovered against the pound sterling and the Japanese yen and fell against the euro.
The domestic currency recouped sharply against the pound sterling to end the day at Rs 72.65/67 per pound from last close of Rs 75.05/07 per pound and also rose against the Japanese Yen to Rs 50.57/59 per 100 yen from previous close of Rs 50.75/77 per 100 yen.
However, the rupee declined against the single European currency to Rs 62.16/18 per euro from Wednesday's close of Rs 61.78/80 per euro.
Dealers in forex exchange said the domestic currency in sync with local stocks remained under pressure for most of the day before bouncing at the fag end on better availability of dollar. Rupee in the past two days had lost 192 paise mainly because of the shortage of the U.S. currency while the demand particularly sound, they added.
According to official data, F.D.I. inflows have more than doubled to USD 17.21 billion during April-September this year compared to USD 7.25 billion in the same peiod in 2007. The increase in F.D.I. inflows have raised expectations of more inflows in the second half of the fiscal, which also helped rupee gain Friday.
Traders said had it not been for weak equity markets, the rupee would have recovered a major part of its overnight losses.
In volatile trade at the Interbank Foreign Exchange (forex) market Friday, the domestic currency moved between 49.49 and 48.95 during the day.
Indian benchmark Sensex Friday ended lower by 151 points or 1.58per cent, while Asian indices registered gains.
Meanwhile, the Reserve Bank of India fixed the reference rate for dollar at Rs 49.46 and for the single European currency at Rs 62.96.
The rupee premiums on forward dollar ended lower on sustained receiving by exporters.
The benchmark six-month forward dollar premium payable in April ended at 50-1/2 - 52-1/2 paise, down from 58 - 61 paise Wednesday and fast-forward maturing in October also finished lower at 73 - 75 paise from 86 - 89 paise previously.
In cross-currency trades, the rupee recovered against the pound sterling and the Japanese yen and fell against the euro.
The domestic currency recouped sharply against the pound sterling to end the day at Rs 72.65/67 per pound from last close of Rs 75.05/07 per pound and also rose against the Japanese Yen to Rs 50.57/59 per 100 yen from previous close of Rs 50.75/77 per 100 yen.
However, the rupee declined against the single European currency to Rs 62.16/18 per euro from Wednesday's close of Rs 61.78/80 per euro.