MUMBAI: The rupee on Friday recovered by 16 paise to close at 46.72/73 against the US dollar due to fresh selling by exporters and banks on the back of weakness of dollar overseas amid a bearish equity market.
Forex dealers said late hour dollar selling by banks during the day, after a fall in stock markets and the weakness of dollar overseas supported the Indian currency. Resuming weaker at 46.90/92 a dollar against its last close of 46.88/89 a dollar the Indian rupee later bounced to a high of 46.70 before settling at 46.72/73 a dollar.
The Sensex ended lower by 174.42 points, or 1.03%, on Friday. The Asian indices too were bearish.
In the overseas market, the euro recovered ground after steep falls against the dollar and yen, and pared losses against the Swiss franc, which surged earlier in the session in thin trade.
In early trade, global crude oil prices were hovering above $73 a barrel in London. The RBI fixed the reference rate for the US dollar at Rs 46.85 per dollar and for the single European currency at Rs 67.36 per euro.
Rupee premiums for the forward dollar ended sharply higher on fresh paying pressure from banks and corporates.The benchmark six-month forward dollar premium payable in May ended higher at 71-72 paise, compared with 58-60 paise on Thursday. The far-forward futures maturing in November closed up at 127-128 paise from 124-126 paise previously.
In cross-currency trade, the domestic currency moved down against the pound sterling while recovered against the euro and Japanese yen.
The rupee ended lower against the pound to end at Rs 75.67/69 per pound from Thursday’s close of Rs 75.57/59 per pound, but firmed up against the euro at Rs 67.20/22 per euro.
It also recouped against the Japanese yen at Rs 51.73/75 per 100 yen.
Source : The Economic Times