Rupee surges 31 paise to close at 61.44 vs dollar

Our Bureau Updated - December 06, 2013 at 09:54 PM.

rupee

The rupee continued its gaining streak for the third day to end 31 paise stronger at 61.44 against the dollar on sustained dollar selling by exporters and banks and capital inflows.

On Thursday, the domestic unit rose 30 paise to close at 61.75. It opened higher at 61.63/$ on Friday.

During the day, the rupee moved in the 61.43-61.70/$ range at the Interbank Foreign Exchange market. Further, inflows from investors subscribing to PowerGrid Corporation’s follow-on-public offer (FPO) also supported the rupee, a dealer said.

A surge in the euro also aided the rupee, said another dealer.

Further, there was a surge in positive sentiment with the exit polls projecting a BJP victory in the assembly elections in four States.

However, the dollar’s gains against other currencies overseas ahead of the US jobs data limited the rupee’s gains, dealer added.

BSE-benchmark Sensex too ended a shade higher at 20,996.53 points.

US unemployment data for November released on Friday evening showed a reduction to 7 per cent (from 7.2 per cent in October) with a slight increase in jobs creation of 2.03 lakh as compared with 2 lakh in October.This could signal an early tapering of fiscal stimulus announcement citing a recovery in the US economy.However, some experts said just a one month’s data will not be the only deciding factor, though the jobs trend is positive.

The rupee has appreciated 10.7 per cent since its lifetime low of 68.80 against the dollar in August.

Call rates rise, bonds weaken

The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, closed higher at 7.80 per cent from Thursday’s close of 7 per cent.

The 10-year benchmark 7.16 per cent government security, which matures in 2023, ended weaker at Rs 87.50 from the previous close of Rs 87.82. Yield on the security hardened to 9.16 per cent from 9.10 per cent.

>Beena.parmar@thehindu.co.in

Published on December 6, 2013 10:18