Indian Currency Gains 18paise Against US Dollar

New Delhi, July 28, IRNA – Indian currency, rupee Friday gained 18 paise against the dollar to close at one-week high of 55.34 on smart rebound in stocks, amid sustained weakness in dollar value overseas. Sustained dollar selling by exporters and some banks in anticipation of further fall in the US currency in overseas markets helped the local unit gain for the second day in a row. European Central Bank President on Thursday had said the bank will take necessary steps to protect the euro zone. This helped dollar rival euro to rise further. At the Interbank Foreign Exchange (Forex) market, the local currency resumed higher at 55.43 a dollar from previous close of 55.52, but immediately touched a low of 55.58. It later recovered to a high of 55.30 before concluding at 55.34, showing a rise of 0.32 percent. The rupee had had spurted by 64 paise. Meanwhile, the benchmark Sensex today rebounded sharply by 199.37 points or 1.20 percent. Foreign Institutional Investors (FIIs) sold shares worth USD 248.22 million in last three sessions since July 24. The dollar index was down by 0.19 pct against a basket of six major rivals while New York crude oil was trading below USD 90 a barrel in Europe today. Meanwhile, Pramit Brahmbhatt, CEO, Alpari Financial Services, said a better than expected earnings from the banking majors and other corporate earning supported the market, PTI news agency reported. The markets are closely eying the Tuesday’s Reserve Bank of India (RBI) policy meet where in a cut of 25 bps cannot be ruled out.' 'The rupee ended the week on a positive note supported by the ECB President Draghi's statements and hopes of more monetary easing by the Federal Reserve. Importers who have missed the levels of 55 levels may still look at covering at 55.50 or any further dips. We expect the recovery to disappear soon as the local and international fundamental factors are still the same with no improvement in it,' said Abhishek Goenka, Founder & CEO, India Forex Advisors. The premium for the forward dollar ended further lower on sustained receivings by exporters. The benchmark six-month forward dollar premium payable in December finished weak at 152-1/2-154-1/2 paise from last close of 155-157 paise. The premium for far-forward contracts maturing in June also declined to 297-299 paise from 302-1/2-304-1/2 paise. The RBI fixed the reference rate for the US dollar at 55.4130 and for euro at 68.1010. The rupee fell back against the pound sterling to end at 86.90 from Thursday's close of 86.83, while improved further against the Euro to 68.01 from 68.10. It also remained firm against the Japanese yen to 70.80 per 100 yen from last close of 71.02./end