Mumbai, Sep 15: Overcoming its initial weakness, the rupee today broke its eight-session long losing streak closing higher by 9 paise at 47.55/56 against the US currency following firm equity markets and a weak dollar overseas.
Fresh dollar selling by exporters and some banks as well as slow down in capital outflows too supported the rupee rise.
In an active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened a tad lower at 47.65/66 per dollar from previous close of 47.64/65.
It touched a low of 47.95 in late morning trade following some weakness in local stocks after opening firm.
Later, the rupee bounced back in line with smart rebound in equities and concluded at 47.55/56. In last eight sessions, the rupee had lost 185 paise or 4.04 per cent.
“Yesterday RBI had intervened into the market thus appreciating the rupee from its opening. The same scenario is seen today and possibility of RBI's intrusion at near 48-mark cannot be ruled out completely,” India Forex Advisors CEO Abhishek Goenka said.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, “The rupee took cues from global markets where dollar traded weak against the major currencies. Equities were also bullish and closed up by one per cent which further appreciated the rupee.”
The BSE benchmark Sensex, which was down by about 165 points in late morning deals, closed up by nearly 167 points or 1.0 per cent.
The dollar index was down by 0.33 per cent against a basket of currencies while New York crude oil was trading above USD 89 a barrel in European market today.
In the New York market the dollar fell against the euro yesterday following reports leaders of France and Germany agreed that Greece will remain in the eurozone, calming some nerves about Europe's sovereign-debt woes.
The RBI fixed the reference rate for the dollar at Rs 47.8055 and the euro at Rs 65.1143.
The rupee premium for the forward dollar shot up further on sustained paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in February flared up to 80-84 paise from Wednesday's close of 65-67 paise and far-forward contracts maturing in August also jumped to 119-124 paise from 102-105 paise previously.
The rupee edged up against the pound sterling to finish at Rs 75.21/23 from overnight close of Rs 75.22/24 remained weak at Rs 65.62/64 per euro from Rs 5.33/35 previously. It also eased further against the Japanese yen to Rs 62.09/11 per 100 yen from last close of Rs 62.02/04. PTI