The Hindu Business Line : Re closes higher in volatile market

The rupee closed higher in a market that saw volatile movement. The supply came from the overseas NDF market as well as from exporters, who sold dollars when it moved close to 43, said forex dealers. On Friday, the rupee opened at 42.64/66 and touched a low of 42.91/92, due to corporate demand in the initial part of the day. Between the levels of 42.80 and 42.90 exporters, who were waiting for the rupee to touch 43, started selling dollars.

This pushed the rupee to the day ’s high of 42.52/54. It ended trade at 42.54/56, about 20 paise higher than the previous close of 42.75/76. The dollar was stable against other currencies like the euro and pound. The forward premia came down, as exporters who sold dollars in the spot market received premia in the forwards market. The six-month premium closed at 1.18 per cent (1.38 per cent) and the one-year closed at 1.01 per cent (1.31 per cent).

The rupee has lost almost Rs 3 against the dollar in the last 10 trading sessions and it is likely to touch 43 any time now, said the chief forex dealer with a public sector bank. “As Monday is a holiday, we may see the rupee opening strong, due to bunched up dollar supplies. But after that it would weaken. It has seen a movement of 50-60 paise almost everyday,” he said.

— Our Bureau

More Stories on : Forex

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Forex reserves rise to $312.7 b

Re closes higher in volatile market

‘S. Asian countries need to move towards electronic payments’

Rs 100 service fee for $10,000 forex deal

Muthoot Capital net up

LIC to push sale of traditional policies

ECGC, United India tie up to offer free marine cover

‘ICICI Bank circular discriminatory’

LVB opens technology centre

Govt likely to issue Rs 35,000 cr of oil bonds

Bond prices fall

Call rate closes at 6-6.25%

ISO for SKS Microfinance

Centre appoints EDs in 3 banks