Rupee up 35 paise; logs 4th straight yearly drop in 2014

Indian rupee  appreciated by 35 paise to end at two-week high of 63.03 against the greenback tracking firm equities and sustained dollar selling by exporters, but lost ground on an annual basis for the fourth year in a row.

The rupee depreciated by 123 paise or 1.99 per cent, in calendar year 2014.

It had closed at 61.80 against dollar in 2013.

The rupee had depreciated by over 11 per cent in 2013 and by more than 18 per cent in 2011.

The decline was about 3 per cent in 2012.

The currency had risen against dollar in 2010.

At the Interbank Foreign Exchange (Forex) market today, the domestic unit commenced better at 63.31 a dollar from previous close of 63.38, and logged the session's low of 63.38 on initial weakness in local stocks.

Later, the rupee bounced back on rally in domestic equities and sustained dollar selling by exporters to settle at the day's high of 63.03.

Previously, it had concluded at 62.94 on December 15, 2014. Apart from rising local equities, the rupee also got support from a flattish dollar index.

The dollar index was down by a mere 0.02 per cent against its major global rivals.

Meanwhile, the Indian benchmark S&P BSE Sensex today firmed up by 95.88 points, or 0.35 per cent.

Foreign Portfolio Investors (FPIs) injected  $44.20 million yesterday.

Pramit Brahmbhatt, CEO, Veracity Group said, "Indian rupee traded strong for consecutive second day and closed half per cent up taking cues from local equities which traded positive for the day.

"We have seen some dollar selling through exporters and also the dollar index is not able to sustain above 90 levels.

The trading range for the spot rupee is expected to be within 62.70 to 63.40."

Reflecting tight financial position of the central government, fiscal deficit at Rs 5.25 lakh crore as of November-end almost touched 99 per cent of the full year target of Rs 5.31 lakh crore.

After markets closed, government data showed the growth rate of eight core sector industries rose to five-month high of 6.7 per cent in November on the back of better output in coal, refinery products, electricity and cement. In the forward market, premia fell back on fresh receivings by exporters.

The benchmark six-month premium payable in May dipped to 190.5-192.5 paise from yesterday's close of 192-194 paise.

Forward contracts maturing in November 2015 also moved down to 395-397 paise from 400.5-402.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 63.3315 and for Euro at 77.0048.

The rupee gained further to 98.30 against the pound from 98.44 and also firmed up to 76.58 per euro from 77.08.

It also strengthened to 52.79 per 100 Japanese yen from 52.99 on Tuesday