MUMBAI: Rising for the second day, the rupee today appreciated by 16 paise to close at one-week high of 54.56 against the US dollar on hopes of robust capital inflows in view of a series of PSU share sales starting with RCF tomorrow.
Continued dollar selling by exporters and some banks as also weak dollar overseas ahead of European Central Bank's monthly policy meet late today boosted the rupee, foreign exchange dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 54.87 a dollar from previous close of 54.72 and immediately touched a low of 54.91 on early hesistency in local stocks.
However, rupee later turned positive on late rally in local stock markets on the back of firm European opening and dollar selling by exporters and some banks to a high of 54.50 before settling at 54.56, a rise of 16 paise or 0.29 per cent.
Yesterday, it had risen by 20 paise or 0.36 per cent. "The rupee was seen appreciating today against the US dollar. The gains were supported by the slight recovery in the Euro. The positive closing in the Indian stock markets also lent support to the rupee. Hopes of dollar inflows in the disinvestment of RCF scheduled tomorrow too supported the rupee," said Abhishek Goenka, Founder and CEO, India Forex Advisors.
The government's 12.15 per cent stake sale in Nalco is likely next week and 10.82 per cent disinvestment in SAIL may take place on March 20. The public offer to sell 12.5 per cent stake in Rashtriya Chemical and Fertilisers (RCF) is scheduled to be launched tomorrow. Besides, stake sale in trading giant MMTC is expected to happen on March 14.
The Indian benchmark S&P BSE Sensex, which was moving in and out of positive terrain by over 60 points, finished higher by 161 points or 0.84 per cent on fag-end buying.
Foreign Institutional Investors (FIIs) infused over USD 130 million in Indian stocks today, as per provisional data.
The dollar index was down by around 0.15 per cent against a basket of six major global currencies.
"Globally, the Euro surged against the US dollar after the upbeat economic data of the Euro zone Service PMI and retail sales. The overall sentiment is poised with the speculation that the central banks are set for further monetary easing," he added.
Yesterday, after falling below 55-level in early trade, the rupee washed out early losses to close three paise up at 54.86, snapping a two-session string of losses, on late dollar selling by some exporters and custodian banks.
Meanwhile, the premium for the forward dollar today declined on receipts by exporters.
The benchmark six-month forward dollar premium payable in August finished down at 186-1/2-188 paise from overnight close of 189-191 paise.
Far-forward contracts maturing in February also ended weak at 348-349-1/2 paise from 352-354 paise.
The RBI fixed the reference rate for the US dollar at 54.6520 and for euro at 71.2092.
The rupee fell back sharply against the pound sterling at 83.28 from Monday's close of 82.49 and also reacted downwards against the euro to 71.59 from 71.29.
It also turned negative against the Japanese yen to end at 58.96 per 100 yen from previous close of 58.70.
Continued dollar selling by exporters and some banks as also weak dollar overseas ahead of European Central Bank's monthly policy meet late today boosted the rupee, foreign exchange dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 54.87 a dollar from previous close of 54.72 and immediately touched a low of 54.91 on early hesistency in local stocks.
However, rupee later turned positive on late rally in local stock markets on the back of firm European opening and dollar selling by exporters and some banks to a high of 54.50 before settling at 54.56, a rise of 16 paise or 0.29 per cent.
Yesterday, it had risen by 20 paise or 0.36 per cent. "The rupee was seen appreciating today against the US dollar. The gains were supported by the slight recovery in the Euro. The positive closing in the Indian stock markets also lent support to the rupee. Hopes of dollar inflows in the disinvestment of RCF scheduled tomorrow too supported the rupee," said Abhishek Goenka, Founder and CEO, India Forex Advisors.
The government's 12.15 per cent stake sale in Nalco is likely next week and 10.82 per cent disinvestment in SAIL may take place on March 20. The public offer to sell 12.5 per cent stake in Rashtriya Chemical and Fertilisers (RCF) is scheduled to be launched tomorrow. Besides, stake sale in trading giant MMTC is expected to happen on March 14.
The Indian benchmark S&P BSE Sensex, which was moving in and out of positive terrain by over 60 points, finished higher by 161 points or 0.84 per cent on fag-end buying.
Foreign Institutional Investors (FIIs) infused over USD 130 million in Indian stocks today, as per provisional data.
The dollar index was down by around 0.15 per cent against a basket of six major global currencies.
"Globally, the Euro surged against the US dollar after the upbeat economic data of the Euro zone Service PMI and retail sales. The overall sentiment is poised with the speculation that the central banks are set for further monetary easing," he added.
Yesterday, after falling below 55-level in early trade, the rupee washed out early losses to close three paise up at 54.86, snapping a two-session string of losses, on late dollar selling by some exporters and custodian banks.
Meanwhile, the premium for the forward dollar today declined on receipts by exporters.
The benchmark six-month forward dollar premium payable in August finished down at 186-1/2-188 paise from overnight close of 189-191 paise.
Far-forward contracts maturing in February also ended weak at 348-349-1/2 paise from 352-354 paise.
The RBI fixed the reference rate for the US dollar at 54.6520 and for euro at 71.2092.
The rupee fell back sharply against the pound sterling at 83.28 from Monday's close of 82.49 and also reacted downwards against the euro to 71.59 from 71.29.
It also turned negative against the Japanese yen to end at 58.96 per 100 yen from previous close of 58.70.
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