Rupee recovers by 15 paise vs dollar

Mumbai, Mar 26 (PTI) The Indian rupee Thursday recovered
by 15 paise to close at 50.58/59 against the US currency on a
strong rally in equity markets and sustained capital inflows.

In active trade at the Interbank Foreign Exchange (Forex)
market, the local unit opened higher at 50.64/65 per dollar
from its previous close of 50.73/75.

It later moved in a range of 50.75 and 50.45 before
ending the day at 50.58/59 a dollar. It was down by a total 28
paise in the last two trading days.

According to forex dealers, the main reason for the rupee
rise was the sharp rally in shares. The Indian benchmark
Sensex Thursday was 335.20 points or 3.47 per cent higher to
end above the 10,000-mark after nearly 11 weeks.

Asian indices also finished in the green on the rally on
Wall Street on expectations of early recovery in the US
economy.

Continued buying by foreign institutional investors
(FIIs) in local equity markets also helped the rupee recovery.
They pumped in USD 574.60 million in the last straight seven
sessions since March 17.

The weak dollar overseas against its major rivals and
some dollar selling at the fag end also boosted rupee
sentiment.

Meanwhile, global crude oil prices were trading above USD
53 a barrel in Asian trade Thursday.

Forex markets will remain closed Friday, March
27, for observing "Gudi Padwa".

Moving towards zero, inflation fell further to 0.27
per cent during the second week of March from 0.44 per cent
during week ended March seven, giving room to the central bank
to take further monetary steps to spur the economy.

The Reserve Bank of India, however, fixed the reference
rate for the dollar at Rs 50.54 and the euro at Rs 68.64.

The rupee premiums on the forward dollar ended further
lower on sustained receivings by exporters.

The benchmark six-month forward dollar premium payable in
August ended down at 73-1/2-75-1/2 paise from 85-87 paise on
Wednesday and the far-forwards maturing in February also
closed lower at 127-129 paise from 135-1/2-137-1/2 paise
previously.

In cross-currency trade, the rupee firmed up against the
pound sterling and the Japanese yen while softened against the
euro.

The domestic unit improved further against the pound
sterling to end the day at Rs 73.64/66 from its last close of
Rs 73.96/98 and recovered against the Japanese yen to Rs
51.45/47 per 100 yen from the previous close of 51.93/95.

It, however, declined against the euro to Rs 68.69/71
from yesterday's close of 68.59/61. PTI VMP
AM
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