After another day of volatile trade,the rupee today appreciated by seven paise to close at a new one-month high of 59.04 against the dollar as the RBI’s liquidity-tightening measures continued to lend support.
At the Interbank Foreign Exchange Market,the rupee
opened strong at 58.82 a dollar from the previous close of
59.11 and strengthened to 58.69 on initial gains in local
stocks. Later,it fell to a low of 59.10 before closing at
59.04,a rise of seven paise or 0.12 per cent — its third day
of gains. Although the rupee strengthened above the 58 mark for the second day,it was unable to sustain those gains. On Tuesday,the Reserve Bank had announced additional liquidity-tightening measures to contain excessive speculation and volatility in the foreign exchange market.
“The currency continued to get the boost from the number
of measures taken by the RBI in last 10 days,” said Abhishek
Goenka,founder & CEO of India Forex Advisors. “It indicates
that the central bank is not ready to see the rupee weakening
and will take every possible step to stem the fall.”
The benchmark S&P BSE Sensex dropped 56.57 points,or
0.29 per cent. FIIs pulled out a net Rs 442.94 crore yesterday,as per provisional data with stock exchanges.
The dollar index was down by 0.10 per cent against six
major global rivals.
“The trading range for the spot USD/INR pair is expected
to be within 58.65 to 59.35,” said Pramit Brahmbhatt,CEO of
Alpari Financial Services (India).