Rupee ends higher by 17 paise vs USD on recovery in equities

The rupee ended higher by 17 paise to 64.00 against the American currency on fag-end selling of dollars by banks and exporters on the back of strong recovery in the equity market.

The rupee resumed lower at 64.20 per dollar against the yesterday's closing level of 64.17 at the Interbank Foreign Exchange (Forex) Market on initial dollar demand from banks and importers.

However, it recovered afterwards to 63.94 per dollar on selling of dollars by banks and exporters in view of recovery in the equity market, before concluding at 64.00, disclosing a gain of 17 paise or 0.26 per cent.

The rupee had dropped by 32 paise or 0.50 per cent yesterday.

It hovered in a range of 63.9400 and 64.2150 during the day.

The dollar index was trading down 0.10 per cent against its major global rivals.

In New York market, the dollar traded lower against most of its rivals yesterday after two sessions of marginal gains, as US treasury yields turned lower and a Greek debt payment to the IMF supported the euro.

The Indian benchmark Sensex ended higher by 373.62 points or 1.39 per cent today. It had ended lower by 629.82 points of 2.29 per cent yesterday.

Pramit Brahmbhatt, Veracity Group CEO said, "The rupee traded strong and appreciated by over quarter percent during the day to close at 64.00. The rupee moved in a positive note with the help of higher opening in the domestic equity market, also the weak dollar index supported the rupee."

The trading range for the Spot USD/INR pair is expected to be within 63.70 to 64.30.
In the forward market, the premium recovered on fresh paying pressure from corporates.

The benchmark six-month premium payable in October edged up to 216.5-218.5 paise from 215.5-217.5 paise yesterday and forward contracts maturing in April 2016 also moved up to 437.5-439.5 from 434.5-436.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 64.1895 and for the euro at 72.0784.

The rupee recovered against the pound sterling to 100.20 from 100.59 previously and also recovered against the euro to 71.89 from 72.15.

However, it ruled steady against the Japanese currency at 53.47 per 100 yen.