Rupee recovers from early losses, gains by 5 paise vs dollar

Mumbai, July 3 (PTI) The Indian rupee recovered from
early losses and ended marginally higher by five paise to
47.89/91 against the American currency on hopes of persistent
capital inflow from foreign institutional investors in view of
rising trends in equity markets.

The stock market spiralled upwards after the presentation
of the Railway Budget with the benchmark Sensex soaring by 255
points on heavy buying by foreign funds and partial recovery
in global stocks.

Market sentiment was boosted by intra-trade recovery in
Asian and European stocks. Disappointing US jobs data weighed
on the global stocks.

FIIs have been net buyers, albeit in moderate quantity,
in equity this week and bought shares worth USD 387 million
between June 29 and July 3.

The domestic unit resumed lower at 48.10/12 against its
last close of 47.94/95 a dollar and later fell further to a
day's low of 48.19 before ending higher at 47.89/91 a dollar.

Dealers at the Interbank Foreign Exchange market said
banks bought dollars as it improved against the euro in
overseas markets.

However, the euro edged higher in the London market
against the dollar, correcting after sharp falls late in the
previous session in the wake of bleak US job numbers, which
dampened hopes of global economic recovery.

Meanwhile, the Reserve Bank of India fixed the reference
rate for US dollar at Rs 47.99 and for the euro at Rs 67.25.

The rupee premiums on the forward dollar showed a mixed
trend due to uneven demand and supply transactions.

The benchmark six-month forward dollar premium payable in
December ended at 58-1/2-60-1/2 paise, eased from
59-1/2-61-1/2 paise on Thursday while the far-forwards
maturing in June finished slightly higher at 108-1/2-110-1/2
from 107-1/2-109-1/2 paise previously.

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

The domestic currency advanced against the pound sterling
to end at Rs 78.37/39 from the overnight closing level of
78.55/57 and recovered against the euro to Rs 67.05/07 from
67.41/43 previously.

However,the Indian rupee also moved down further against
the Japanese Yen to Rs 49.92/94 per 100 yen from the previous
closing level of Rs 49.60/62 per 100 yen. PTI RSU
RAI
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