Mumbai: Rebounding from one-week low, the Indian rupee on Thursday rose by 9 paise to finish at 62.16 against the dollar, snapping its four-day falling trend, on the back of dollar selling by banks and exporters amid rise in stocks.
Moreover, dealers avoided taking any long dollar positions ahead of a long weekend, forex traders. The rupee resumed lower at 62.32 a dollar at the Interbank foreign Exchange (Forex) market and weakened further to 62.34 due to initial dollar demand as well as volatile trend in stocks.
However, the domestic currency staged a recovery in late afternoon trade and closed at 62.16 per dollar, showing a smart gain of 9 paise, or 0.14 per cent. The local unit had lost 33 paise to close at 62.25 against the dollar on Wednesday - its lowest level in one-week amid RBI Governor Raghuram Rajan's comment that an "excessively strong rupee" is undesirable as it triggers disinflationary pressures.
Both the benchmark indices today staged a modest rebound after Wednesday's heavy fall with benchmark Sensex rising over 68 points and the Nifty moving up by 15 points. Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 2,786.24 crore yesterday, as per provisional data.
Benchmark brent crude continued to trade above the $60 a barrel mark. The Dollar index (DXY) extended its recent upside momentum against a basket of six major currencies following healthy growth indicators in the US economy and was up by 0.24 per cent to hit 96.21 - its highest level in 11-1/2 year.
"A strong dollar in the international market continues to limit any appreciation of the rupee. Dollar index is trading higher ahead of US February jobs data tomorrow and following better-than-expected US economic data yesterday. Euro fell against greenback before ECB meet today," said Admisi Forex India Pvt Ltd, Director, Suresh Nair.
The forward premia slipped further on sustained receipts from exporters. The benchmark six-month premium payable in August moved down to 231-233 from overnight level of 233.5-235.5 paise and the forward contracts maturing in February 2016 also weakened to 448.5-450.5 as compared to 451-453 paise.
The Reserve Bank of India fixed the reference rate for dollar at 62.2015 and for Euro at 68.6020. The rupee rebounded sharply against the pound to 94.72 per pound from 95.51 previously and also recovered against the euro to 68.67 compared with 69.27. It also recouped to 51.74 per 100 yen from 52.02 on Wednesday.
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