Rupee recovers 7 paise, closes at 49.29/30 Vs dlr

Mumbai: The rupee today recovered marginally by seven paise to close at 49.29/30 against the Greenback on sharp rise in local stocks amid sustained capital inflows. Fresh dollar selling by exporters on hopes of further fall in dollar overseas on rise in euro on indication by Greece to implement deep spending cuts to secure its bailout.

Weakness in dollar overseas too supported the rupee. The dollar index, consisting of six major currencies, was down by over 0.2 per cent in European market. The dollar index also eased today, with investors moving out of the greenback`s safe haven after China`s central bank chief said his nation will increase its investment and support for Europe.

At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed better at 49.30/31 a dollar from previous close of 49.36/37 and moved in a range of 49.19 and 40.40 before concluding better at 40.29/30. The Indian benchmark sensex today spurted by almost 354 points or 1.98 per cent, extending gains for the third day in a row, which mainly supported the rupee.

FIIs remained net buyers in equities as they pumped in USD 232.44 million yesterday. In the current calender year till February 14, they infused USD 4.41 billion in equities as per Sebi data. Banks and exporters preferred to reduce their dollar position in view of sustained foreign capital inflows into equity market along with weakness of dollar in global market, a forex dealer said.

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