Rupee ends almost flat at 62.30 vs USD in narrow trading range

The rupee recovered from losses after trading in a narrow range today and closed one paisa higher at 62.30 against the dollar as exporters sold the US currency, which was stable overseas.

Bearish local equities and capital outflows constrained the rupee, a forex dealer said.
The rupee opened lower at 62.40 a dollar from yesterday's close of 62.31 and declined further to a low of 62.47 on early dollar demand from importers and weakness in domestic stocks.

Later, it bounced back to 62.29 on late dollar selling by exporters before ending at 62.30, a rise of one paisa.

"Tuesday witnessed some range-bound trading session with markets awaiting inflation data. 62.50 continues to remain a critical resistance during the day," Admisi Forex India Pvt said in a note.

The benchmark 30-share S&P BSE Sensex tumbled 94.06 points today, its fifth straight session of losses. Overseas investors sold a net Rs 567.02 crore of shares today, according to provisional exchange data. They pulled out USD 41.35 million yesterday, according to Sebi data.

The euro firmed up against the dollar after data showed a pullback of euro-zone inflation, helping the rupee to recover some of its early losses. German economic data came in better than expected.

The dollar index, which measures the US currency against six major global rivals, was trading at its overnight closing level.

"Rupee traded range bound and ended near yesterday's close as dollar index is also trading in a tight range near its previous close," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).

The government is inclined to keep curbs on gold imports until the end of March to contain the current account deficit, Economic Affairs Secretary Arvind Mayaram said in an interview to PTI.

Forward dollar premiums continued to decline on sustained receipts by exporters.

The benchmark six-month forward dollar premium payable in June moved down to 245-247 paise from 246-248 paise previously and far-forward contracts maturing in December ended a tad lower at 484-1/2 to 486-1/2 paise from 485-487 paise.

The RBI fixed the reference rate for the dollar at 62.3790 and for the euro at 84.9720.
The rupee fell to 102.33 against the pound from 102.06 and remained weak at 85 per euro from 84.80. It was at 59.66 per 100 Japanese yen from 59.59.