Rupee surges 45 paise on Axis Bank stake sale inflows

Rupee surges 45 paise on Axis Bank stake sale inflows

The rupee surged 45 paise on Friday, its biggest daily gain in two weeks, to end at 60.89 against the dollar on massive capital inflows linked to the government stake sale in Axis Bank.

After suffering its worst loss in two months on Thursday, the rupee’s recovery on Friday was also aided by fresh dollar selling by exporters and some banks on the back of a weak American currency overseas, said forex traders.

At the Interbank Foreign Exchange (Forex) market, the rupee resumed higher at 61.15 a dollar from last close of 61.34, but declined to a low of 61.25.

Later, it rebounded to settle at the day’s high of 60.89, a rise of 45 paise — its biggest gain since March 6 when it shot up by 64 paise, or 0.73 per cent. On Thursday, it had dipped 39 paise or 0.64 per cent. For the week, the rupee rose 30 paise against dollar.

As per provisional exchange data, FIIs pumped in over Rs 4,200 crore on Friday in the capital market segment alone.

“Heavy capital inflows linked to government stake sale in bank (Axis Bank) helped the rupee register robust gains. Inflows are also happening in the debt market,” Head of Foreign-Exchange Trading at HDFC Bank, Ashtosh Raina said.

Besides, the CPSE Exchange Traded Fund (ETF) has so far garnered cumulative bids of over Rs 4,000 crore boosted by strong demand from overseas investors, sources said.