Press Esc to close
Wednesday 17 September 2014
News updated at 10:56 PM IST
Weather
Max: 29.7°C
Min : 20.2°C
In Bangalore
Sunny day

Rupee bounces back from 60.90 as RBI steps in, ends at 60.43

Mumbai, Aug 1, 2013, (PTI):
File photo.

After slumping to 60.90 levels in early trade, the rupee today managed to recoup most losses to end almost flat at 60.43 against the US dollar on suspected RBI intervention and stricter hedging rules for FIIs.

The dollar strengthened overseas after the US Federal Reserve gave no indication of withdrawing its bond-buying plan and US GDP growth figures were better than expected.
The rupee opened lower at 60.70 a dollar from the previous close of 60.40 at the Interbank Foreign Exchange Market. It moved in a range of 60.25 to 60.90, before PSU banks selling dollars at the behest of RBI helped the local currency end at 60.43, down 3 paise.

"Towards the end, rupee futures appreciated over 0.75 per cent as RBI intervention was suspected in the foreign exchange markets to defend the rupee," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).

In yet another step to rescue the rupee, which fell to a near-record low of 61.20 yesterday, the Reserve Bank today tightened hedging rules by making it mandatory for foreign institutional investors to obtain the consent of holders of participatory notes and derivative instruments before hedging.


The benchmark S&P BSE Sensex erased initial gains and closed down about 29 points. Foreign institutional investors pumped in Rs 142.87 crore yesterday, as per provisional data with the stock exchanges.

"The trading range for the spot USD/INR pair is expected to be within 60.00 to 60.80," said Brahmbhatt.

In Chennai, RBI Governor D Subbarao reiterated there was no time frame for rolling back liquidity tightening measures imposed to address exchange rate volatility.
"The measures taken will be in place until volatility in the foreign exchange market is controlled. I do not want to give any time frame," Subbarao said.

Forward dollar premiums dropped on sustained receipts by exporters.

The benchmark six-month forward dollar premium payable in January dipped to 251-255 paise from the overnight close of 266-270 paise. Far-forward contracts maturing in July tumbled to 458-460 paise from 479-483 paise.

The RBI fixed the reference rate for the dollar at 60.7423 and for the euro at 80.6025.
The rupee fell back to 92.07 against the pound sterling from 91.84 previously and recovered to 79.99 per euro from 80.11. It also bounced back against the Japanese yen to 61.25 per 100 yen from 61.81.

Go to Top

Photo Gallery
BJP MP from Mathura Hema Malini at a function on women empowerment...

BJP MP from Mathura Hema Malini at a function on women empowerment...

Differently-abled children wear masks of Prime Minister Narendra Modi to celebrate his birthday...

Differently-abled children wear masks of Prime Minister Narendra Modi to celebrate his birthday...

Villagers perform worship of elephants on the occasion of Biswakarma Puja...

Villagers perform worship of elephants on the occasion of Biswakarma Puja...

Devotees take part in a procession on the occasion of Sri Krishna Janmashtami celebrations...

Devotees take part in a procession on the occasion of Sri Krishna Janmashtami celebrations...

Younga Yoo, shoots past India's Umapatidevi Thokchom at women's first round group A soccer match...

Younga Yoo, shoots past India's Umapatidevi Thokchom at women's first round group A soccer match...

A man pulls an inflatable raft with his son, through the flood water...

A man pulls an inflatable raft with his son, through the flood water...

Cars submerged in flood water after the Jammu and Kashmir floods...

Cars submerged in flood water after the Jammu and Kashmir floods...

Sonam Kapoor and Kirron Kher during a promotional event for their upcoming film Khoobsurat...

Sonam Kapoor and Kirron Kher during a promotional event for their upcoming film Khoobsurat...

Narendra Modi and Chinese President Xi Jinping, holding umbrella watch a cultural performance...

Narendra Modi and Chinese President Xi Jinping, holding umbrella watch a cultural performance...

Prime Minister Narendra Modi and Chinese President Xi Jinping on a traditional swing...

Prime Minister Narendra Modi and Chinese President Xi Jinping on a traditional swing...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523