Fresh capital inflows helped the Indian rupee rise by 11 paise to 46.53/54 against the US dollar on Friday amid dollar selling by exporters and weak stock market.
Forex dealers said the Indian currency regained its overnight losses on fresh buying by Foreign Institutional Investors (FIIs) in equities.
After pulling out on December 9, FIIs picked up shares on December 10, going by the provisional data on SEBI.
They also attributed the recovery to dollar selling by exporters mainly in later part of the day.
The rupee sentiment was also aided by the Reserve Bank's reported statement that the capital inflows into India are in line with requirement and there is no concern of the flows building asset price bubbles.
In lacklustre trade, the local unit hit a high of 46.49 before concluding the day at 46.53/54.
After initial firmness, the Indian benchmark Sensex ended lower by 70.28 points or 0.41 per cent today. Asian indices, excepting Shanghai Composite, finished in the green.
Weakness in local equities after morning session was due mainly to release of lower-than market expectation of factory output data. The index of industrial production (IIP) rose by a robust 10.03 per cent in October against a paltry 0.1 per cent a year ago.
Weakness in local equities after morning session was mainly due to release of lower-than market expectation of factory output data.
The index of industrial production rose by a robust 10.03 per cent in October against a paltry 0.1 per cent a year ago.
Meanwhile, global crude oil was trading above $71 a barrel in London.
The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.52 and for the euro at Rs 68.55. Rupee premiums on the forward dollar ended higher on sustained paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in May ended up at 57-59 paise from 54-56 paise on Thursday and far-forward maturing in November also finished higher at 116-118 paise from 110-112 paise previously.
In cross-currency trade, the domestic currency recovered against the pound and the Euro while improved further against the Japanese yen.
The rupee rose against the pound to end at Rs 75.79/81 per pound from Thursday's close of Rs 76.16/18 and also edged up against the euro to Rs 68.70/72 per euro from Rs 68.77/79 previously.
It, however, firmed up further against the yen to Rs 52.37/39 per 100 yen from its last close of Rs 52.81/83.
Source : ndtv.com