Rupee up by 32 paise against dollar

The rupee on Tuesday shot up by 32 paise to end at nearly a two-month high against the US currency, bolstered by sharp spurt in local stocks amid persistent dollar selling by exporters and banks.

Completing straight three session of gains, the rupee closed 32 paise higher at 44.95/96.

In fairly good activity at the Forex market today, the local currency opened strong at 45.18/19 a dollar from previous close of 45.27/28.

However, smart rally in equities helped the rupee to rally further to a high of 44.91 before concluding the day at 44.95/96, a smart rise of 0.71 per cent.

The dollar index was trading a little bit low by 0.03 per cent against its six major rivals in European market today.

According to Alpari Forex (India) CEO Pramit Brahmbhatt, the main reason behind the rupee appreciation is expectation of more dollar inflow due to announcement of some concessions given to foreign investors.

The trading range for the dollar-rupee pair will be between 44.80-45.30 in the next trading session, he added.

The government yesterday in the Union Budget allowed foreign retail investors to invest in Indian mutual funds and also raised the limit for them in infrastructure debt.

The Bombay Stock Exchange benchmark Sensex today zoomed by 623.10 points or 3.50 per cent, registering its biggest gain in last 21 months, mainly supporting the rupee rise.

Forex dealers said that sale of dollar by exporters and some banks too supported the rupee.

Meanwhile, global crude oil was trading above $97 a barrel in London today.

The dollar fell to a four—month low in the New York market yesterday, resuming a recent downward trend as currency traders pushed the euro higher ahead of this week’s meeting of Euorpean Central Bank policy makers.

The rupee premium for the forward dollar remained weak on sustain receivings by exporters. The benchmark 6—month forward dollar premium payable in August closed lower at 139—1/2— 141—1/2 paise from 143—1/2—144—1/2 paise on Monday.

Far—forward contracts maturing in February also finished down at 268—1/2—270—1/2 paise from 273—275 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 45.12 and the euro at Rs 62.32.

The rupee recovered to Rs 73.13/15 against the pound sterling from Monday’s close of Rs 73.48/50 and also rebounded to Rs 62.14/16 per euro from Rs 62.62/64 previously.

It continued to remain firm against the yen to end at Rs 54.74/76 per 100 yen from last close of Rs 55.27/29.