Rupee gains 14 paise against dollar

Recovering from nearly seven-month low level, the rupee on Wednesday closed 14 paise higher at 61.61 against the US currency amid fresh dollar selling by exporters and some banks ahead of long weekend holidays.

 At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.92 and immediately touched a low of 61.95, a level not seen since March 4, 2014 when it had logged an intra-day low of 62.15.

Later, a sudden dollar selling by exporters and some banks pushed the rupee up to a high of 61.58, before settling at 61.61, a net rise of 14 paise or 0.23 per cent from its previous close.

On Tuesday, it had plunged by 22 paise or 0.36 pct. Meanwhile, the BSE benchmark Sensex closed down by 62.52 points or 0.23 per cent in lacklustre trade, while FPIs/FIIs withdrew $25.50 million on Tuesday, as per Sebi data.

Pramit Brahmbhatt, CEO, Veracity Group, said: "Today rupee tried to recover from yesterday's fall ahead of the five-day holidays.... Most Asian currencies traded weak

against the dollar as it continues to trade at four-year highs.... the rupee posted its fourth weekly fall in a row."

In forward market, premium ended steady to better on stray payments from banks and corporates.

The benchmark six-month premium payable in March closed stable at its overnight level of 234.5-236.5 while far-forward contracts maturing in September, 2015 edged up to 473.5-475.5 paise from 472.5-474.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.7511 and for the euro at 77.9546.

The rupee improved further against the pound to 99.72 from previous close of 99.91 and also strengthened to 77.56 per euro from 77.68. It hardened to 56.05 per 100 Japanese yen from 56.24.

The forex and money markets will remain closed on October 2, 3 and 6 on account of Mahatma Gandhi Jayanthi, Dussehra and Bakri Id.