The rupee continued to rule one-month high by firming up another 30 paise to end at 61.75 against the American currency on the back of persistent selling of dollars by banks and exporters in view of strong equity market amidst weakness of dollar overseas.
This was on hopes of more foreign capital inflows into equity market amid exit polls predicting a strong showing by the BJP in the recently concluded Assembly elections to four states.
The rupee resumed higher at 61.75 as against the last closing level of 62.05 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to a one-month high of 61.53 before ending at opening level of 61.75 per dollar, showing a gain of 30 paise or 0.48 per cent.
It hovered in a range of 61.53-61.90 per dollar during the day.
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) said that local equity markets traded positively throughout the day and closed up by over 1.25 per cent as exit polls showed that the opposition Bharatiya Janata Party stands strong chances of victory in general elections due by May.
Taking cues from this Rupee appreciated more than 50 paise during the day and closed on a positive note. The trading range for the USD/INR pair is expected to be within 61.00 to 62.50.
In New York market, the US dollar surrendered some of the gains scored after a report on private-sector payrolls underlined ideas the Federal Reserve could move sooner than previously thought to cut back on its monthly bond purchases.
The BSE benchmark sensex rose by 249.10 points or 1.20 per cent to finish at 20,957.81 after crossing 21K level in the early trade. Forward dollar premiums eased on fresh receipts from exporters.
The benchmark six-month forward dollar premium payable in May moved down to 244-1/2-246-1/2 paise from 246-1/2- 248-1/2 paise previously and far-forward contracts maturing in November also softened to 478-481 paise from 480-1/2-482-1/2 paise.
The RBI fixed the reference rate for the dollar at 61.6895 and for the euro at 84.0690.
The rupee remained firm at 101.00 per pound as against 101.58 yesterday and also hardened further against the euro to 83.92 from 84.33.
It, however fell back slightly to 60.54 per 100 Japanese yen from last close of 60.51.
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