Forex Update: Rupee closes 9 paise higher against dollar at 61.36

The rupee continued to rule listless throughout the week, but snapped its four-day of losing string to end higher by nine paise at 61.36 against the Greenback on record breaking local equities amid heavy capital inflows.

Fresh dollar selling by exporters and some banks also aided the rupee rise while strong dollar overseas kept the rupee rise under check.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced better at 61.39 a dollar from previous close of 61.45 and was trapped in a narrow range of 61.33 and 61.4450 before settling at 61.36, showing a rise of nine paise or 0.15 pct.

In straight four days, the rupee has dipped by 18 paise or 0.3 per cent.

The Indian benchmark S&P BSE Sensex on Friday zoomed by 519.5 points or 1.90 per cent to end at new peak of 27,865.83 while FPIs/ FIIs injected $235.97 mln yesterday, as per Sebi data.

The dollar index was up by 0.46 pct against its major global rivals. The gains came in the wake of a statement from the Federal Reserve that suggested growing confidence in the economic recovery, even as central bankers promised to keep benchmark interest rates near zero for a considerable period.

Mr. Pramit Brahmbhatt, CEO, Veracity Group said,"Rupee continues to trade in a tight range but ended higher. The month end dollar demand nullified the positive effect of strong local equities which closed at all time high for the second consecutive day. "

Rupee movement was checked by the strong Dollar index which is trading at $86.51 and is heading towards to post its second weekly gain in a row. The trading range for the Spot rupee is expected to be within 60.00 to 61.80.

In the forwards market, premium ended steady to better on stray payments by banks and corporates.

The benchmark six-month premium payable in March almost stable at 191-192.5 paise from 191-193 paise while far-forward contracts maturing in September, 2015 rose to 422-424 paise from 417.5-419.5 paise previously.

The Reserve Bank of India fixed the reference rate for dollar at 61.4080 and for the Euro at 77.1899.

The rupee improved further against the pound to 98.23 from overnight close of 98.32 and also remained firm to end at 77.22 per euro from 77.37. It too shot up to 54.95 per 100 Japanese yen from 56.38.