MUMBAI: The rupee on Wednesday soared by 24 paise to close at 47.24/25 against the dollar on increased capital flows into firm stock markets and the US currency weakening against major global currencies.
In a quite trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened higher at 47.30/32 a dollar from its overnight close of 47.48/49 per dollar. The rupee, later, moved in a range of 47.40 and 47.22 a dollar before closing at 47.24/25 a dollar.
Dealers said stronger stock markets after the UPA government came into power compelled foreign funds to pump in heavily on expectations of heavy spending in key development areas and speedy reforms. Weakness in dollar overseas against its major rivals also helped the rupee rally, they added.
Foreign institutional investors (FIIs) bought shares worth nearly $614 million in the current month till June 8 while they picked up shares to the tune of nearly $5 billion in the current calender year so far. After yesterday's gain of over 460 points on comments from Prime Minister Manmohan Singh about the economic growth, the Indian benchmark Sensex today shot up by another 340 points, or 2.25 per cent, on heavy institutional buying in blue-chip counters, supporting the rupee rise.
The Reserve Bank of India fixed the reference rate for the US dollar at Rs 47.27 and for the euro at Rs 66.71.
Rupee premiums on the forward dollar ended slightly lower on fresh receivings by exporters.
The benchmark six-month forward dollar premium payable in November ended weak at 63-65 paise from 65-67 paise on Tuesday and the far-forwards maturing in May also soften to 110-112 paise from 111-113 paise previously.
In cross-currency trade, the Indian rupee dropped further against the pound sterling and the euro while recovered against the Japanese yen.
The domestic currency dipped against the pound sterling to end at Rs 77.64/66 per pound from its last close of Rs 76.73/75 and also moved down against the euro to Rs 66.64/66 per euro from overnight close of Rs 66.14/16.
It, however, bounced back against the Japanese yen to Rs 48.24/26 per 100 yen from Rs 48.40/42 previously.
Source : The Economic Times