Rupee closes 18 paise higher, extends gains for 2nd day

A possible intervention by the apex bank at lower levels amid strong local equities helped the rupee to rally for the second straight day and closed up by 18 paise at 61.76 against the American unit.

A sharp rise in USD overseas amid fresh capital outflows, however, curtailed the rupee rise to some extent.

The Indian rupee commenced little bit higher at 61.93 a dollar from previous close of 61.94 and immediately touched a low of 61.94.

Later, it got a boost on likely further dollar selling by the central bank with the help of state-run banks at lower levels and touched a high of 61.75 before concluding at 61.76, disclosing a rise of 18 paise or 0.29 pct. On Thursday, it ended up by two paise or 0.03 pct.

The benchmark S&P BSE Sensex on Friday rose 267.07 points or 0.95 per cent to yet another new peak while FPIs/FIIs sold shares worth USD 66.37 million on Thursday, as per Sebi data.

The dollar index was up by 0.50 pct against its major global rivals on outperformance of the US economy.

Mr.Pramit Brahmbhatt, Veracity Group CEO said,"Rupee traded positively taking cues from the strong local equities backed by the gains in blue chips. Positive sentiments in the market helped local indices to touch new all time high which supported Rupee to appreciate over quarter percent and closed at 61.78."

"The trading range for the Spot USD/INR pair is expected to be within 61.40 to 62.20," he added.

In the forward market, premia ended slightly better on stray paying pressure from banks and corporates.

The benchmark six-month premium payable in April edged up to 205.5-207.5 paise from Thursday's close of 205-207 paise.

Forward contracts maturing in October, 2015, also rose to 428.5-430.5 paise from 426.5-428.5.

The Reserve Bank of India fixed the reference rate for dollar at 62.8505 and for the Euro at 77.6224.

The rupee improved further against the pound to 96.73 from 97.10 on Thursday and shot up to 76.72 per euro from 77.64.

It also hardened to 52.37 per 100 Japanese yen from 52.46.