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Re closes at 63.84 mark

Mumbai, Sept 10, 2013 DHNS 22:03 IST
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The rupee on Tuesday rallied against the US dollar as August trade deficit narrowed to $10.9 billion and also on reports that the US may not strike Syria.

The rupee opened at 64.48 to a dollar in morning trade as against last weekend’s level of 65.25 a dollar. It went higher by 140 paise or 2.14 per cent against US dollar to settle at 63.84 in the closing. The dollar-rupee pair made a high of 64.47 levels and a low of 63.77 levels.

Treasury executives pointed out that banks and exporters have sold dollars on sustained capital flows. Some easing of tension over the crisis in Syria over the weekend and a slew of steps announced last week to attract more foreign exchange are exerting a positive influence on market sentiment.

So, banks and exporters preferred to reduce their dollar position on expectation of more foreign capital inflows into the equity market as the rupee was seen recovering accompanied by the major Asian currencies who were trading on a positive note.

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