Rupee gains 4 paise on smart rise in stocks

Forex dealers said that smart recovery in stocks after mid-session helped the rupee recovery.

Foreign Institutional Investors (FIIs) sold shares worth USD 365.4 million in three days since January 8.

However, the Bombay Stock Exchange benchmark Sensex spurted by 265.57 points or 1.52 per cent after falling by over 574 points or 3.18 per cent in straight last three days.

Global crude oil was trading above USD 87 a barrel in London today.

In a narrow but two-way movements at the Interbank Foreign Exchange (Forex) market, the local currency opened better at 45.70/71 a dollar from last close of 45.7250/7350.

Later, it touched the day`s low of 45.78 on early weakness in equities where the Sensex was down by over 167 points.

Firm dollar overseas and sustained capital outflows too initially weighed on the rupee. The dollar index was up by nearly 0.4 per cent against its major rivals in Europe today.

Fresh dollar selling by exporters too aided the rupee`s gain. It later touched a high of 45.64 before concluding at 45.68/69.

The rupee premium for the forward dollar ended steady to better on stray paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in July closed at its previous closing level of 126-128 paise.

Far-forward contracts maturing in January, however, ended better at 256-258 paise from 254-256 paise on Thursday.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 45.76 and the euro at Rs 62.02.

The rupee recouped to Rs 73.01/03 against the pound sterling from Thursday`s close of Rs 73.39/41 and also firmed up to Rs 61.79/81 per euro from Rs 62.32/34 previously.

It also shot up against the yen to Rs 54.68/70 per 100 yen from last close of Rs 55.32/34.