Tuesday, 25 September 2012

Rupee ends at over four-month high of 53.36

Rupee ends at over four-month high of 53.36
Clean Media Correspondent

MUMBAI, Sept 25 (CMC) Extending its gains for the third straight session, the rupee on Tuesday gained 11 paise to hit a fresh over 18-week high of 53.36 against the dollar on fag-end selling of the American currency by exporters.

Forex dealers said signs of increased capital inflows amid stable dollar overseas also helped the rupee rally.

The rupee opened higher at 53.38 per dollar against last close of 53.47 at the Interbank Foreign Exchange (Forex) market. But it soon fell to a low of 53.63 on dollar demand from importers, mainly oil refiners, to meet their month-end requirements and also initial hesitancy in local equities.

However, sudden dollar selling by exporters and heavy capital inflows later aided the rupee to bounce back to a high of 53.31 before settling at 53.36, a gain of 11 paise, or 0.21 per cent.

Meanwhile, the BSE benchmark Sensex on Tuesday ended up by just 21.07 points, or 0.11 per cent at 18,694.41.

Foreign Institutional Investors (FIIs) pumped in USD 310.02 million yesterday, after injecting USD 458.57 million last Friday as per Sebi data.

"The rupee put up a mixed performance primarily gaining on the policy reforms such as the SEB (state electricity board) restructuring and the disinvestment sale of RCF shall aid improvement in government finances. Rupee later reversed its intra-day losses on dollar selling by exporters," Alpari Financial Services (India) CEO Pramit Brahmbhatt said.

The dollar index, a gauge of six major currencies, was down by 0.01 per cent, while New York crude oil was quoting below USD 93 a barrel in Europe today.

"The rupee started the day on a firm note but later traded on lower note after morning session as European debt concerns continued to persist with Spain is delaying the ESM bailout.

"Recent data from Germany showing a drop in the business confidence index also pressurised the currency. It recovered at the fag-end to close in positive," Abhishek Goenka, founder and CEO, India Forex Advisors, said.

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