Rupee ends 8-day losing string,up by 7 paise Vs dlr

Dollar buying by oil importers capped the rupee rise,dealers said.

Helped by capital inflows,the rupee snapped its eight-session long losing string ending 7 paise up at 45.34/35 against the US currency,even as sharp fall in stocks and sustained dollar demand from importers erased most of its early gains.

In fairly active trade at the Interbank Foreign Exchange (Forex) market,the local unit had opened strong at 45.25/26 per dollar from yesterday’s close of 45.41/42.

Dollar buying by oil importers and fall in stocks in afternoon trade,however,capped the rupee rise,dealers said.

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The rupee moved in a range of 45.25 and 45.46 before concluding at 45.34/35. In last eight trading sessions,the rupee had plunged by 134 paise,or 3.04 per cent.

“Indian rupee saw a volatile trading as it moved almost 22 paisa throughout the day,rupee opened strong but in afternoon session as equity markets turned red,rupee followed their way. Dollar buying was also seen by oil importers,” Alpari Financial Services (India) CEO Pramit Brahmbhatt said “The persistent dollar demand from oil refiners in order to pay their dues to Iranian oil companies enhanced the strength in dollar. A better than expected IIP data of 8.8 per cent for the month of June could not hinder the rupee’s decline,” Abhishek Goenka,CEO,India Forex Advisors said.

However,capital inflows helped the rupee snap its eight-session losing string. FIIs pumped over USD 75 million into equities in the last two days.

“The trading range for the USD/INR will be 45.10 to 45.50 tomorrow,” Brahmbhatt said.

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The BSE benchmark Sensex today tumbled by nearly 220 points or 1.29 per cent.

Meanwhile,New York crude oil was trading below USD 86 a barrel in European market today.

“The current drastic depreciation in the rupee (over 3 per cent in the last eight straight sessions) and premiums is momentary and the situation is expected to change as soon as the dollar obligation to Iran is settled completely,” Goenka said.

The rupee premium for the forward dollar bounced back sharply on fresh paying pressure from banks and corporates.

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The benchmark six-month forward dollar premium payable in January jumped to 62-67 paise from Thursday’s close of 46-50 paise. Far-forward contracts maturing in July also shot up to 130-135 paise from 105-110 paise previously.

The RBI fixed the reference rate for the dollar at Rs 45.3740 and the euro at Rs 64.3660. The rupee reacted downwards against the pound sterling to \end at Rs 73.74/76 from overnight close of Rs 73.33/35 while declined further to Rs 64.66/68 per euro from Rs 64.31/33 previously. It,however,recovered against the Japanese yen to Rs 59.15/17 per 100 yen from last close of Rs 59.28/30.