Rupee gains 37 paise to one-week high at 62.07 vs dollar

Mumbai: The rupee gained for the second day, adding 37 paise to a one-week high of 62.07 against the dollar on Thursday as the RBI eased swap norms for banks borrowing funds overseas and exporters sold the US currency. Support for the rupee also came from capital inflows on the back of a recovery in local equities.

The gains were capped to some extent by a firm US currency overseas. At the interbank foreign exchange market, the rupee opened at 62.20 a dollar from the previous close of 62.44 and fell to a low of 62.38 on early hesitancy in local stocks. It bounced back to breach the 62 mark and reach a high of 61.98 before ending at 62.07, up 37 paise or 0.59 per cent.

On Wednesday, it had gained 31 paise. It closed at 61.77 on September 19. "Rupee had started the session on a stronger note as all the major Asian currencies were seen trading positive against the US dollar," said Abhishek Goenka, CEO of India Forex Advisors. "Continued selling by exporters helped the rupee to post gains."

The local currency also got support after the Reserve Bank of India said it would ensure adequate cash in the banking system as liquidity tightens due to the seasonal pick-up in credit demand and festival-related demand. The 30-share S&P BSE Sensex moved in a narrow range and gained 37.61 points or 0.19 per cent at the close. Foreign institutional investors infused USD 69.44 million in stocks on Wednesday, as per Sebi data. The dollar index was up 0.11 per cent against its major rivals.

"The trading range for the USD-INR pair is expected to be within 61.50 to 62.50," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). Forward dollar premiums softened on fresh receipts by exporters. The benchmark six-month forward dollar premium payable in February moved down to 236-239 paise from the previous close of 238-243 paise and far-forward contracts maturing in August eased to 453-458 paise from 454-459 paise.

The RBI fixed the reference rate for the dollar at 62.2260 and for the euro at 84.1073. The rupee hardened to 99.62 against the pound from 100.15 previously and strengthened to 83.79 per euro from 84.36. It firmed up against the Japanese yen to 62.89 per 100 yen from 63.40 previously.