The rupee on Monday rose for the second day to close at nearly three-week high of 52.51/52 against the dollar, up by 20 paise on sustained selling of the US currency by exporters. Foreign exchange dealers said some weakness in the US currency overseas amid signs of continued foreign funds inflow, mainly in the debt market, helped the rupee. FIIs pumped in more than $1.6 billion in the debt market, and injected $194.8 million in equities in last week, according to SEBI data.
The rupee premium for the forward dollar improved further on sustained paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in June firmed up to 153-155 paise from last Friday’s close of 150-152 paise and far-forward contracts maturing in December also strengthened further to 260-262 paise from 250-252 paise. The RBI has fixed the reference rate for the US dollar at 52.7325 and for the euro at 67.0098. The rupee continued to rule strong against the pound sterling to end at Rs 81.08/10 from last weekend’s close of Rs 81.77/79.