| Date: |
31-01-2013 |
| Subject: |
Indian rupee shoots up to 53.3 against dollar, touches three-month high |
|
MUMBAI The Indian rupee shot up by 47 paise to settle at nearly three-and-a-half-month high of 53.3 against the US currency following sustained dollar selling by exporters and some banks amid continued capital inflows, extending gains for the second straight day.
Fall in dollar overseas and positive equities also kept the rupee on the rise.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced strong at 53.55 a dollar from last close of 53.77 and immediately touched the day’s low of 53.6.
However, heavy dollar selling by exporters and some banks and persistent foreign funds inflow in local equities later pushed the rupee upwards to a high of 53.28 before finishing at nearly three-and-a-half-month high of 53.3, up by 47 paise or 0.87 per cent. Previously, it had ended at 52.87 on October 17.
The dollar index was down by 0.24 per cent against a basket of six major currencies ahead of the policy announcement from US Federal and US growth data.
“The rupee was seen strengthening to its over three-month high against the greenback. It was gaining since yesterday when the RBI cut the policy rates as per the expectations. The strong recovery in the euro after the upbeat data and a fall in the US dollar index supported the gains in rupee. On the domestic front, the dollar inflows also helped rupee to gain,” said Abhishek Goenka, Founder and CEO, India Forex Advisers.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, “The INR hit to a 13-week high in spot tracking gains in euro and other highly traded currencies against USD. The euro hit to a 13-month high on hopes of the Fed continuing its easing programme till US unemployment and inflation targets are met. Now near-term target for the rupee is 53 levels.”
The premium for the forward dollar fell back slightly on fresh stray receiving by exporters
Source : omantribune.com
|