Rupee gains for the fourth day, ends at over one-month high

Mumbai: The Indian rupee continued to rule firm against the greenback for the fourth successive session, gaining another 16 paise today to end at over one-month high of 62.16 on persistent selling of dollars by banks and exporters on hopes of capital inflows into domestic markets. [caption id=“attachment_2020961” align=“alignleft” width=“380”]  Reuters[/caption] The stock benchmark Sensex extended its gains for the third straight session, rising 127 points to end at one-week high, ahead of retail inflation and IIP data releases. This also helped the rupee. After local markets closed for the day, government data showed that industrial production grew 3.8 per cent in November while retail inflation moved up to 5 percent in December. The rupee resumed higher at 62.15 per dollar as against the last weekend’s level of 62.32 per dollar at the Interbank Foreign Exchange (Forex) Market. It then moved up further to 62.09 per dollar before concluding at one-month high of 62.16 per dollar, showing a gain of 16 paise or 0.26 percent. This is its strongest close since 62.02 per dollar on December 10, 2014. During Monday’s session, it hovered in a range of 62.09 per dollar and 62.26 per dollar. The local unit has now gained by 141 paise, or 2.23 percent, in four trading sessions. In the global market, the euro declined against the dollar, approaching a nine-year low, on speculation that reports this week will strengthen the case for sovereign-bond purchases from the European Central Bank. The dollar index was up by 0.61 percent against a basket of six major global rivals on hopes of rise in key interest rates. Veracity Group, CEO, Pramit Brahmbhatt said: “The Rupee appreciated over quarter per cent, taking cues from strong local equities which closed up by almost half a percent. Also, the FII buying in debt market helped.” The trading range for the spot USD/INR pair is expected to be within 61.75 to 62.75, he added. Meanwhile, premia softened declined on sustained receipts by exporters. The benchmark six-month premium payable in June fell to 215-217 paise from 218-220 paise previously. Premium on forward contracts maturing in December also slipped to 421-423 paise from 423-425 paise. The Reserve Bank of India fixed the reference rate for dollar at 62.1605 and for Euro at 73.7348. The rupee gained further to 94.08 from 94.41 against the pound previously and moved up further to 73.37 per euro from 73.61 last Friday. It also firmed up to 52.13 per 100 Japanese yen as against 52.25 previously. PTI