Rupee stages mild rally against dollar

The rupee staged a mild relief rally against the US currency today on light exporter dollar sales, following the recent tumble to multi-week lows, but trade was relatively quiet and cautious at the interbank foreign exchange (forex) market ahead of Lok Sabha results tomorrow.

Closing at Rs. 45.37/39 per dollar, a mere three paise gain from Tuesday’s over 3-1/2-month closing low of Rs. 45.40/42, the rupee traded cautiously before the election results, as the spectre of a hung parliament loomed large over the market, dealers said.

Most operators preferred to stay on the sidelines and refrained from taking fresh positions owing to the ongoing political uncertainties, they added. The rupee, however, opened on a positive note at Rs.45.35/38 per dollar, adjusting to an upward correction after the recent plunge to multi-weeks lows appeared to have been overdone. The domestic currency declined by a massive 75 paise in the last two sessions.