Rupee gains 18 paise against dollar on strong local equities

Date : Jul 13th, 2011
Mumbai: Snapping two days of losses, the rupee gained 18 paise on Wednesday to close the day at 44.52/53 against the US currency in line with a smart recovery in local equities despite fresh capital outflow.
At the Interbank Foreign Exchange (Forex) market, the local unit opened strong at 44.57/58.
Later, it bounced back to settle the day at 44.52/53, a net rise of 0.40 per cent.
Exporters and some banks preferred to reduce their dollar position in view of uncertainty in the currency market, forex dealers said.
Fall in the US currency overseas aided the rupee rise, they added.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, “Rupee traded strong for the day, taking cues from global markets where dollar traded weak against major currencies. Indian equity markets also ended up by one per cent which strengthened the rupee further.”
“Recovery in equity market aided the rupee rise. Yesterday’s Chinese data had indicated robust GDP growth, which helped to lift the commodity prices and the European shares. All these factors encouraged the rupee to appreciate today,” said India Forex Advisors CEO Abhishek Goenka.
The dollar index, consisting of six major currencies, was down by about 0.3 per cent and New York crude oil was trading near $ 97.5 a barrel in the European market on Wednesday.
Meanwhile, The Bombay Stock Exchange benchmark Sensex on Wednesday finished higher by over 184 points or 1.0 per cent.
Foreign Institutional Investors (FIIs), after pumping in $ 2.68 billion since June 23, sold shares worth $ 205.28 billion yesterday as per SEBI data.

Source: http://flashnewstoday.com

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