Rupee completes 3-session of gains

The Indian rupee continued its north bound journey for the third session in a row and appreciated by another eight paise to end at 55.49 against the greenback on continued dollar selling by exporters amid sustained capital inflows, despite late dollar demand by importers. Some weakness in local equities amid firm dollar overseas pared rupee’s early gains, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed better at 55.45 a dollar from last close of 55.57. Later, it moved side-ways in a range of 55.36 and 55.55 before concluding at 55.49, showing a rise of eight paise. Initially, there was some dollar selling by exporters and some banks, but late dollar demand from importers, mainly oil refiners, and recovery in dollar overseas as nervousness set in ahead of Greece’s meeting with the Eurogroup, which weighed on the rupee and later gave up some its early gains. The dollar index, consisting of six major currencies, was up by 0.14 per cent while New York crude oil was trading around $96.5 a barrel in Europe today. Foreign Institutional Investors (FIIs), which are consistent buying in the current month so far, injected $38.19 million yesterday as per Sebi data. The Indian benchmark sensex today softened by 38.40 points or 0.21 pct, snapping two-day gaining string. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,” The INR shed most of its gains towards the end on rebound in dollar index. The dollar index rebounded from its low of 81.85 levels to above 82.00 levels as expectations of stronger economic numbers in later session and the FOMC minutes shall dampen the QE hopes.” “The Finance ministry has passed the insurance and pension bills for the approval of the union cabinet signalling a firmer action from the government but the international factors has been ruling the markets,” he added. “In spite of Dollar index declining below 82 levels we saw rupee trading in a narrow range from last few days. The rupee is consolidating from a long time and we could see a break out coming soon again drifting the rupee to 56 levels.” said Abhishek Goenka, Founder & CEO, India Forex Advisers. “Continuing its gains against the US dollar for the third straight session, Indian rupee closed at 55.49 levels. Rupee extended gains on account of late recovery in dollar overseas ahead of the ECB act to bring down the borrowing costs of debt ridden European countries. The US 10 year treasury yields slipped near 1.76 per cent today indicating there is some risk aversion taking place in the market,” he commented. From gulftoday