Increasing gains for the third day in a row, the rupee rose by 20 paise to settle at 1-1/2 week high of 67.32 a dollar on persistent dollar selling by banks and exporters amid firm equity markets.
Banks and exporters preferred to reduce their dollar position on hopes of more foreign capital inflows in view strong equity markets. The rupee opened higher at 67.50 per dollar against yesterday’s closing level of 67.52 per dollar at the Interbank Foreign Exchange (Forex) market and firmed up further to 67.31 per dollar in the day trade.
The domestic banking sealed with gains of 20 paise or 0.30 per cent during 67.32, a top shutting turn given Jun 20 when a rupee had stayed during 67.31. The rupee ended the week with gains of nearly 1% or 64 paise compared to previous week’s closing level of 67.96.
The rupee finished a week with gains of scarcely 1 per cent or 64 paise compared to prior week’s shutting turn of 67.96. The dollar index was trading down by 0.18 per cent opposite a basket of 6 currencies in a late afternoon trade.
Meanwhile, RBI fixed the reference rate for the dollar at 67.4410 and euro at 74.7449. In cross-currency trades, the rupee firmed up further against the pound sterling to finish at 89.52 from 90.87 yesterday and recovered against the euro to 74.89 from 75.19.
The domestic banking changed adult serve opposite a Japanese yen to 67.67 per 100 yens from 65.68. The BSE Sensex rallied over 145 points to finish during 8-month high of 27,145, buoyed by information that showed production activity collected steam final month amid clever unfamiliar collateral inflows.
Foreign investors today withdrew a net Rs. 187.51 crore from stocks, provisional exchange data showed. In forward market, a premium for dollars steady to better trend due to mild paying pressure from corporates.