Rupee appreciates by 19 paise

Mumbai: Although the rupee pared early gains, it still appreciated further by 19 paise to end at 49.15/16 against the Greenback on sharp rebound in local stocks amid dollar selling by exporters and weak dollar overseas. However, sustained capital outflows capped the rupee rise to certain extent.

At the Interbank Foreign Exchange (Forex) market, the domestic currency opened sharply higher at 49.03/04 a dollar against last Wednesday`s close of 49.34/35 and immediately touched a high of 48.90. Forex dealers attributed early sharp rise in the rupee value to smart rise in local equities. The Indian benchmark sensex was up by over 555 points in morning trade. However, late dollar demand from importers and some banks weighed on the rupee and it fell back to a low of 49.22 before concluding at 49.15/16, a rise of 0.39 percent.

The sensex today closed higher by 440.13 points or 2.79 percent after crashing by 905.66 points or 5.42 percent in straight last four sessions. Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,"Indian rupee appreciated by about 0.4 percent against the dollar, as local equities closed up by almost 3 percent. Globally dollar also weakened against major rivals which helped rupee to perform."

"Strong support is seen at 49.00 and the trading range for the USD/INR will be 49.00 to 49.50 tomorrow," he added. Sustained dollar selling by exporters on the back of dollar weakness in global markets too boosted the rupee sentiment.