Press Esc to close
Saturday 01 October 2016
News updated at 2:07 PM IST
Weather
Max: 29.7°C
Min : 20.5°C
In Bengaluru
Generally cloudy
Breaking News

Rupee gains 85 paise to 65.70 per dollar after PM's comments

Mumbai, Aug 30, 2013, (PTI) :
Prime Minister Manmohan Singh speaks in the Rajya Sabha during the ongoing Monsoon session in New Delhi on Friday. PTI Photo/ TV GRAB

The rupee got a boost today from the Prime Minister's assurances in Parliament on combating the currency's fall and reviving economic growth, gaining 85 paise to close at 65.70 against the dollar.

Support for the local currency also came from dollar sales by exporters and some banks after the central bank took steps on Wednesday to stem the rupee's fall.

Prime Minister Minister Manmohan Singh said, "Sudden decline in exchange rate is certainly a shock, but we will address this through other measures, not through capital controls or by reversing reforms."

At the same time, he said, "to some extent depreciation can be good for the economy as this will help to increase our export competitiveness and discourage imports."

Singh was confident growth in this fiscal will rise to 5.5 per cent from a decade's low of 5 per cent in 2012-13.

At the interbank foreign exchange market, the local currency resumed at 67 from the previous close of 66.55 and dropped to a low of 67.43 on initial hesitancy in domestic stocks. It rebounded on dollar selling to settle at the day's high of 65.70, a rise of 85 paise or 1.28 per cent.

"The sharp gains in rupee were mostly attributed to RBI intervention and PM's speech," said Abhishek Goenka, CEO of India Forex Advisors. "The rupee was getting support from the strong positive closing in the stock markets."

The gains came a day after the battered local currency posted its biggest single-day rise in at least 15 years as the Reserve Bank of India allowed state-owned oil refiners, the biggest buyers of dollars, to purchase foreign-exchange through a special forex swap facility.

The benchmark S&P BSE Sensex climbed 218.68 points or 1.19 per cent. Foreign institutional investors sold a net Rs 248.18 crore of shares yesterday, as per provisional data.

"The central bank was also seen selling dollars twice in a day via state-run banks, which further helped the rupee," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). "The trading range for the rupee is expected to be within 65 to 66.50."


Go to Top

Photo Gallery
A hair stylist Kailash Kashid creates a special hair cut slogan of Maratha Kranti Morcha...

A hair stylist Kailash Kashid creates a special hair cut slogan of Maratha Kranti Morcha...

Actor Salman Khan plays with his sister Arpita's kid at an event for the tie-up between...

Actor Salman Khan plays with his sister Arpita's kid at an event for the tie-up between...

Artisans work on a giant model of Hindu god Ganesh during preparations for the upcoming Durga Puja..

Artisans work on a giant model of Hindu god Ganesh during preparations for the upcoming Durga Puja..

The palace witnessed very little visitors on the day and thus children enjoy playing at the...

The palace witnessed very little visitors on the day and thus children enjoy playing at the...

Temples submerged at Gwari Ghat due to floods caused in Narmada River by heavy rains...

Temples submerged at Gwari Ghat due to floods caused in Narmada River by heavy rains...

Indian Army vehicles move towards border areas in Akhnoor sector on India Pakistan Border...

Indian Army vehicles move towards border areas in Akhnoor sector on India Pakistan Border...

BJP activists celebrate the Indian army's Surgical strikes along the Line of Control in PoK...

BJP activists celebrate the Indian army's Surgical strikes along the Line of Control in PoK...

all-party meeting in New Delhi on Thursday following Indian army's surgical strikes along the LoC...

all-party meeting in New Delhi on Thursday following Indian army's surgical strikes along the LoC...

People celebrate after Indian army's Surgical strikes along the Line of Control...

People celebrate after Indian army's Surgical strikes along the Line of Control...

Artists practice the Garba dance ahead of the Navratri festival in Ahmedabad...

Artists practice the Garba dance ahead of the Navratri festival in Ahmedabad...

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