Re rallies and weakens

MUMBAI, June 18: The rupee touched an intra-day high of 41.88 today, but closed weaker at 42.21/22 even as the six-month annualised forward ...

MUMBAI, June 18: The rupee touched an intra-day high of 41.88 today, but closed weaker at 42.21/22 even as the six-month annualised forward cover finished 63 basis points softer at 11.7 per cent.

Buoyed by finance secretary Montek Singh Ahluwalia’s statement that the rupee will stabilise at 42, the local currency opened at 41.95/42.05, stronger than its previous quote of 42.14/17. As reports of the yen recovering to 136 to the greenback from 142 filtered in, fears of another Asian crisis subsided. With corporates encashing their dollars, the rupee continued to post gains to reach an intra-day high of 41.88.

The initial strengthening in the spot rupee saw exporters rushing in to receive premiums and a few importers cancelling their forward contracts.

Story continues below this ad

At 41.88, the State Bank of India (SBI) started buying dollars.

"The SBI made dollar purchases all the way up to 42.15/16," dealers said. Towards the close of trades, the rupee came under more pressure as banks bid for the dollar aggressively to covertheir short positions. The rupee ended at 42.20/21. Cash/spot closed at 6/8 paise while cash/tom closed at 0.15/0.75 paise.

The rupee’s gain in early morning trades helped forwards come off their previous highs. The six-month annualised forward cover closed softer at 11.57 per cent, compared with its overnight close of 12.33 per cent.

Govt cancels foreign funding licence of Sonam Wangchuk’s NGO amid Ladakh protests

India44 min ago

The Union Home Ministry has revoked the FCRA licence of Sonam Wangchuk's NGO due to violations of the Foreign Contribution (Regulation) Act. The decision was made following a protest in Leh that resulted in four deaths, with the ministry citing Wangchuk's controversial statements as a contributing factor.

View all shorts

Live Blog

PHOTOS