Rupee gains 64 paise vs dollar

Mumbai: The rupee gained a hefty 64 paise today to close at two-month high of 50.73/74 against the US dollar on smart rise in local stocks. Traders said rupee continued its rally for the fourth day in a row on the back of continued dollar selling by exporters and some banks.

The local currency was also aided by a sharp fall in the dollar overseas. At the International Foreign Exchange (Forex) market, the domestic unit resumed strong at 51.15/16 a dollar, but immediately hit a low of 51.25 on some dollar demand from importers.

However, it bounced back to a high of 50.70 before concluding at 50.73/74, a net rise of 1.25 per cent. In straight four days of trading, the rupee has flared up by 117 paise, or 2.25 per cent. Meanwhile, the BSE benchmark Sensex shot up by nearly 277 points, or 1.71 per cent, continuing a rise for the third trading day in a row. "After opening higher rupee shot up on positive sentiment in the global markets and better than expected Chinese Q4 GDP data today leading to good recovery in the stock markets," India Forex Advisors CEO Abhishek Goenka said.

"Euro is trading positive after better French bond auction yesterday and better German ZEW Economic Sentiment data today," he added. The dollar index was down by over 0.7 per cent against a basket of currencies, while New York crude oil was trading below USD 101 a barrel in European market today. Sustained buying by FIIs in equities too aided the rupee opinion. The rupee premium for the forward dollar ended with hardly any changes. The benchmark six-month forward dollar premium payable in June closed with its overnight level of 164-166 paise while far-forward contracts maturing in December settled a tad higher at 277-279 paise from 276-278 paise.

The RBI has fixed the reference rate for the US dollar at 51.0650 and for the euro at 64.9998. The rupee remained on the upward move against the pound sterling to end at Rs 78.02/04 from Monday`s close of Rs 78.65/67 and also improved further against the euro to finish at Rs 64.83/85 from Rs 65.11/13 previously. It to strengthened against the Japanese yen to Rs 66.08/10 per 100 yen from last close of Rs 66.91/93.