Extending its gains for the third day in a row, the rupee closed up Friday by 12 paise at nearly a two-month high of 44.57/58 against the US currency on continuous sale of dollars amid capital inflows.
Dealers said that persistent dollar selling by exporters and some banks on hopes of further fall in the US currency after the euro rose to a three-week high against the Greenback yesterday in New York after the Greek Parliament approved legislation for implementing stringent austerity measures.
However, late fall in local equities capped the rupee rise to certain extent, they added.
At the Interbank Foreign Exchange (Forex) market, the local unit opened better at 44.67/68 a dollar from yesterday’s close of 44.69/70 and improved further to a high of 44.52 before settling at 44.57/58, a gain of 0.27 per cent. In three days of rally, the rupee has risen by 46 paise or 1.02 pct.
Alpari Financial Services (India) Mr CEO Pramit Brahmbhatt said,”Rupee traded strong near 2 month high against the dollar and appreciated by about quarter per cent, taking cues from global markets where dollar traded weak against the major currencies.”
The dollar index was down by nearly 0.05 per cent in European market today.
Meanwhile, the Bombay Stock Exchange Sensex rose for the sixth day in a row, up 152 points at 2-month high of 18,846, on heavy FII inflows amid sharp dip in food inflation and firm global markets as concerns over Greek debt crisis eased.
Foreign Institutional Investors (FIIs) remained net buyers and pumped in about $ 1.4 billion in six trading sessions since June 23.
India Forex Advisors CEO Mr Abhishek Goenka said,”The rupee ended higher on the back of strong Asian peers despite weaker Hongkong dollar and Thai baht. The rupee gained by nearly one per cent in the week on the back bone of over Rs 5,000 crore inflow in last five days in Indian equity market.”
“One month offshore forward contract is quoting at 44.74-84 levels,” he added.
The rupee premium for the forward dollar ended higher on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in December settled up at 143-1/2-145-1/2 paise from Thursday’s close of 140-141 paise. Far-forward contracts maturing in June also improved to 251-253 paise from 249-251 paise previously.
The RBI has fixed the reference rate for the dollar at Rs 44.5855 and the euro at Rs 64.8018.
The rupee hardened against the pound sterling to end at Rs 71.33/35 from last close of Rs 71.57/59 and also gained further at Rs 64.60/62 per euro from Rs 64.67/69 yesterday.
It, however, recovered against the Japanese yen to Rs 55.20/22 per 100 yen from Thursday’s close of Rs 55.58/60