<p>After another day of volatile trade, the rupee today appreciated by seven paise to close at a new one-month high of 59.04 against the dollar as the RBI's liquidity-tightening measures continued to lend support.<br /><br /></p>.<p>At the Interbank Foreign Exchange Market, the rupee opened strong at 58.82 a dollar from the previous close of 59.11 and strengthened to 58.69 on initial gains in local stocks. Later, it fell to a low of 59.10 before closing at 59.04, a rise of seven paise or 0.12 per cent -- its third day of gains.<br /><br />Although the rupee strengthened above the 58 mark for the second day, it was unable to sustain those gains. On Tuesday, the Reserve Bank had announced additional liquidity-tightening measures to contain excessive speculation and volatility in the foreign exchange market.<br /><br />"The currency continued to get the boost from the number of measures taken by the RBI in last 10 days," said Abhishek Goenka, founder & CEO of India Forex Advisors. "It indicates that the central bank is not ready to see the rupee weakening and will take every possible step to stem the fall."<br /><br />The benchmark S&P BSE Sensex dropped 56.57 points, or 0.29 per cent. FIIs pulled out a net Rs 442.94 crore yesterday, as per provisional data with stock exchanges.<br /><br />The dollar index was down by 0.10 per cent against six major global rivals.<br /><br />"The trading range for the spot USD/INR pair is expected to be within 58.65 to 59.35," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). <br /><br />Forward dollar premiums dropped sharply on fresh receipts by importers.<br /><br />The benchmark six-month forward dollar premium payable in December dipped to 228-233 paise from Wednesday's close of 248-254 paise. Far-forward contracts maturing in June fell to 451-456 paise from 492-497 paise.<br /><br />The RBI fixed the reference rate for the dollar at 58.9415 and for the euro at 77.8663.<br /><br />The rupee improved to 90.33 against the pound sterling from the previous close of 90.78 and moved up to 77.99 per euro from 78.29.<br /><br />It fell against the Japanese yen to 59.25 per 100 yen from 59.11.</p>
<p>After another day of volatile trade, the rupee today appreciated by seven paise to close at a new one-month high of 59.04 against the dollar as the RBI's liquidity-tightening measures continued to lend support.<br /><br /></p>.<p>At the Interbank Foreign Exchange Market, the rupee opened strong at 58.82 a dollar from the previous close of 59.11 and strengthened to 58.69 on initial gains in local stocks. Later, it fell to a low of 59.10 before closing at 59.04, a rise of seven paise or 0.12 per cent -- its third day of gains.<br /><br />Although the rupee strengthened above the 58 mark for the second day, it was unable to sustain those gains. On Tuesday, the Reserve Bank had announced additional liquidity-tightening measures to contain excessive speculation and volatility in the foreign exchange market.<br /><br />"The currency continued to get the boost from the number of measures taken by the RBI in last 10 days," said Abhishek Goenka, founder & CEO of India Forex Advisors. "It indicates that the central bank is not ready to see the rupee weakening and will take every possible step to stem the fall."<br /><br />The benchmark S&P BSE Sensex dropped 56.57 points, or 0.29 per cent. FIIs pulled out a net Rs 442.94 crore yesterday, as per provisional data with stock exchanges.<br /><br />The dollar index was down by 0.10 per cent against six major global rivals.<br /><br />"The trading range for the spot USD/INR pair is expected to be within 58.65 to 59.35," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). <br /><br />Forward dollar premiums dropped sharply on fresh receipts by importers.<br /><br />The benchmark six-month forward dollar premium payable in December dipped to 228-233 paise from Wednesday's close of 248-254 paise. Far-forward contracts maturing in June fell to 451-456 paise from 492-497 paise.<br /><br />The RBI fixed the reference rate for the dollar at 58.9415 and for the euro at 77.8663.<br /><br />The rupee improved to 90.33 against the pound sterling from the previous close of 90.78 and moved up to 77.99 per euro from 78.29.<br /><br />It fell against the Japanese yen to 59.25 per 100 yen from 59.11.</p>