Business Financials

Rupee Ends At 2-Week High Of 67.27/Dollar

Rupee Ends At 2-Week High Of 67.27/Dollar

Mumbai: Extending gains for a fourth straight session, the rupee on Monday firmed up by another 5 paise to close at a two-week high of 67.27 against the US dollar on sustained selling of the American currency by banks and exporters on the back of higher domestic equities.

Weakness of dollar in the overseas market also boosted the value of rupee against the dollar, a forex dealer said.

Exporters and banks preferred to reduce their dollar position on hopes of foreign capital inflows into domestic equity markets.

The rupee opened higher at 67.23 as against the last Friday’s closing level of 67.32 per dollar at the interbank foreign exchange (forex) market and hovered in a range of 67.1475 and 67.29 before ending at 67.27, showing a gain of 5 paise or 0.07 per cent.

The rupee has gained by 68 paise or one per cent in four trading days.

The dollar index was trading 0.06 per cent lower against a basket of six currencies in the late Asian trade.

Meanwhile, the Reserve Bank of India fixed the reference rate for the dollar at 67.1848 and euro at 74.8304.

In cross-currency trades, the rupee firmed up further against the pound sterling to finish at 89.31 from 89.52 on last Friday and also edged up further against the euro to 74.88 from 74.89.

The domestic currency moved up further against the Japanese yen to 65.58 per 100 yens from 65.67.

Meanwhile, domestic equity market remained in the green territory throughout. The 30-share Sensex ended higher by 133.85 points, or 0.49 per cent, at 27,278.76 – its highest closing since October 26 last year.

In global market, the Australian dollar got off to a rocky start today on heightened political uncertainty at home while diminishing global anxiety over Brexit put sterling and the other major currencies on a steadier footing.

The pound inched higher against the dollar in the late afternoon, with credit going in part to buzz around a possible UK corporate tax cut that could boost Britain’s economy.

Meanwhile, Japan’s yen fell against the buck as haven demand eased, and the Australian dollar was volatile after an inconclusive election down Under.

Pramit Brahmbhatt of Veracity Financial Service said, “The rupee opened higher at 67.23/dollar against previous close of 67.32/dollar thus by depreciating dollar as major global indices traded higher with a gain. Our benchmark index Nifty too opened with a considerable gain but at higher levels witnessed some short of profit booking, thus it closed with a gain of 43 points at 8,371 levels. Thus the rupee closed with a gain of 5 paise at 67.27/dollar.”

Trading range for the spot dollar/rupee pair will be 67 to 67.50/dollar.

In the forward market, premium for dollars eased on mild receivings from exporters.

The benchmark six-month premium for December moved down to 200-201 paise from 202-204 paise on last Friday while the forward June 2017 contract ended at 399.25-400.50 paise as against 399-401 paise.