Indian rupee gains 23 paise against US dollar, closes at 60.42

The Indian rupee rose by 23 paise to close the day at 60.42 against the US dollar on fresh selling of the American currency by banks and exporters.

Dealers in foreign exchange said dollar's fall overseas triggered selling of the US unit in the domestic market. The dollar index, a barometer of six major global rivals, was down by 0.06 per cent.

The rupee opened higher at 60.57 per dollar against Monday's close of 60.65 at the Interbank Foreign Exchange (Forex) Market. It firmed up to 60.37 before ending at 60.42, a gain of 23 paise or 0.38 per cent from its previous close.

Meanwhile, the BSE Sensex slumped by 165.42 points, or 0.73 per cent, extending losses for the third straight session.

Foreign Institutional Investor (FIIs) picked up shares worth Rs 77.02 crore on Monday, according to provisional data.

Pramit Brahmbhatt, Veracity Group CEO said: "Today rupee appreciated on corporate inflows. Exporters too were seen selling dollars at higher levels. Dollar index is trading weak for the sixth consecutive day."

The benchmark six-month premium payable in September ended the day at 199.5-201 paise against 208.5-210.5 paise previously.

Far forward contracts maturing in March 2015 settled at 432-434 paise against 447.5-449.5 paise previously.

The Reserve Bank of India fixed the reference rate for dollar at 60.5253 and for the euro at 83.9160.

The rupee recovered sharply against the pound to 101.54 from 102.13 on Monday and also bounced back against the euro to 83.72 from 84.10. The Indian currency, however, remained firm to end at 58.83 per 100 Japanese yen from 59.26.