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Indian rupee strengthened by 20 paise against the US dollar

The Indian rupee staged a smart rebound, approaching a two-month peak of 63.44 against the greenback on renewed dollar selling by banks and exporters amid lacklustre dollar movements overseas.

indian rupee
The local currency had appreciated by 12 paise to settle at 66.21 against the greenback on Wednesday. (Reuters)

 

indian rupee
The local currency hovered in a range of 63.3500 and 63.9400 per dollar during the week. (Reuters)

The Indian rupee staged a smart rebound, approaching a two-month peak of 63.44 against the greenback on renewed dollar selling by banks and exporters amid lacklustre dollar movements overseas.

Strong upside momentum in the domestic equity markets also aided the rupee sentiments.

The local currency strengthened by 20 paise, or 0.31 per cent against the US unit.

Overall sentiments were largely optimistic following upbeat comments from Reserve Bank Governor Raghuram Rajan that the economy is picking up and the country can withstand any crisis emerging from the Greek fallout, a forex dealer said.

The rupee opened substantially weak at 63.80 per dollar against the last weekend’s level of 63.64 at the Interbank Foreign Exchange (Forex) Market on the back of month-end demand for the greenback from importers against the backdrop of looming debt default crisis in Greece.

However, it recovered substantial ground after initial setback on fresh selling of greenback by banks and exporters on hopes of a revival in foreign capital inflows to end quite strong against dollar at 63.44 , showing a healthy gain of 20 paise, or 0.31 per cent, a level not seen since May 5 this year.

The local currency hovered in a range of 63.3500 and 63.9400 per dollar during the week.

On the global front, the dollar remained broadly lower against a basket of other major currencies amid investors’ caution ahead of the much awaited outcome of Sunday’s referendum in Greece.

The Sensex revisited the psychological significant 28,000-mark to hit over 2 month high.

Meanwhile, foreign portfolio investors (FPIs) sold shares net USD 76.90 million during the first four days of the week.

Forward dollar premium payable in December was quoted at 218-220 and far-forward contract maturing in June 2016 at 440-442 paise.

The RBI fixed the reference rate for the US dollar at 63.3963 and the Euro at 70.3319 from previous weekend’s 63.6042 and 71.2302, respectively.

The rupee gained further against the pound sterling to finish the week at 99.13 from 100.09 and also firmed up to 70.39 per Euro compared to 71.25 last weekend.

However, the domestic unit fell back against the Japanese currency to close at 51.61 per 100 yen compared to 51.53 last weekend.

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First published on: 04-07-2015 at 16:50 IST
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