Rediff.com » Business
Rupee bounces back from record low to close at 60.88
Source: PTI August 08, 2013
The rupee on Thursday recovered from all-time closing low, adding 42 paise to end at 60.88 against the dollar amid expectations the government would announce fresh steps to support the local currency.
A rebound in local equities, a weak dollar overseas and fresh dollar sales by exporters also aided the rupee.
The local currency opened higher at 61.20 a dollar from the previous close of 61.30 at the Interbank Foreign Exchange Market.
It declined to 61.40 and bounced back to 60.82 before settling at 60.88, a rise of 42 paise or 0.69 per cent.
On Wednesday, the rupee had tumbled 53 paise or 0.87 per cent. Economic Affairs Secretary Arvind Mayaram hinted the government may come out with more steps to support the rupee.
"I think you should wait till the end of the week. . .the Finance Minister
will be talking about this later," he said after the Reserve Bank of India's board meeting in Mumbai.
The rupee's recovery helped the benchmark S&P BSE Sensex to close 124.46 points higher on Thursday.
The local currency had plunged to an all-time intra-day low of 61.80 on Tuesday.
"Any positive and encouraging steps by the finance ministry and the RBI will help the rupee to erase its losses and post gains against the US dollar," said Abhishek Goenka, founder and CEO of India Forex Advisors.
The dollar index, consisting of six major global units, was down by 0.15 per cent.
"Immediate support for USD-INR (spot) pair is at 60.68 and the trading range is expected to be within 60.65 to 61.35," said Pramit Brahmbhatt, CEO of Alpari Financial Services.
"The rupee is still looking weak as the government has not taken any firm steps to reduce the current account deficit, the main reason for the currency depreciation."
Source:
PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
Recommended by Rediff.com
Rupee dives to historic low of 61.80, rebounds as RBI steps in
Govt's FDI proposals clear final hurdle
Govt IGNORES the plight of poor in India
Shah Rukh, Amitabh wish their fans Eid Mubarak
Rupee rebounds from record lows
© 2024 Rediff.com