Rupee recovers after hitting 1-month low, up 4p at 54.18
Feb 18 2013 , New Delhi
The rupee resumed lower at 54.43 per dollar as against the last weekend’s level of 54.22 at the Interbank Foreign Exchange (Forex) market. It moved down further to one-month low of 54.44 on dollar demand from banks and importers on the back of higher dollar in overseas market.
However, it recovered afterwards to 54.15 before ending at 54.18, up 4 paise, on late dollar sales from banks and exporters, amid persistent capital inflows into stock market.
“The USD-INR pair is seen gaining momentum and it is trading above the key level of 54.20 levels. Strong gains in the dollar index and weakening trend in the euro are contributing for the recent weakness in rupee,” said Abhishek Goenka, founder and CEO, India Forex Advisors.
The BSE benchmark Sensex on Monday rebounded from calendar year’s lowest levels to close 33 points up at 19,501.08.
As per provisional data from bourses, FIIs pumped in Rs 143 crore in Indian equities on Monday.
In London, the euro and the dollar rose against the yen in the early trade today after reports said the G20 decided not to criticise Japan for its expansionist policies.
All the major Asian currencies were trading on a weaker note against the US dollar. The euro tumbled towards $1.33 level on reports that the ECB president is in favour of exchange rate stability to boost growth.
The dollar index, which was sustaining above 80.50 levels, also put additional pressure on the rupee, forex brokers said.
The premium for the forward dollar ended slightly higher on sustained payments from banks and companies.
The benchmark six-month forward dollar premium payable in July inched up at 174-176 paise from last Friday’s level of 173-1/2-175-1/2 paise.
Far-forward contracts maturing in January also moved up to 339-341 paise from 337-339 paise.
RBI fixed the reference rate for the US dollar at 54.28 and for euro at 72.44.
The rupee recovered against the pound sterling to 83.80 from last Friday’s close of 83.97 and also bounced back against the Japanese Yen to close at 57.66 per 100 yen from 58.50.
It, however, moved down further against the euro to end at 72.32 from last close of 72.25.