Rupee climbs to 2-wk high of 64.26

25 Apr 2017

The rupee continued its strong upbeat momentum for the second day, surging by 18 paise to end at a fresh two-week high of 64.26 against the US currency on sustained dollar unwinding from exporters and corporates.
Overall forex market sentiment remained buoyant as French election outcome removed some of the political uncertainties in the near term even as global equities hit multi-year highs.
Though, currency traders are keeping an eye on events in North Korea as a US carrier group heads for the Sea of Japan.
Domestic bourses joined the global relief rally with the Nifty ending to historic session followingg a broad-based rally as investor confidence soared tracking string of strong earnings amid highly positive global cues.
The flagship sensex soared 287.40 pts to finish at 29,943.24, while Nifty jumped 88.65 points at 9,306.60.
The incredible bullish sentiment seems to be borne out of a weaker dollar which also provided a boost for emerging market currencies, a forex dealer commented.
However, the RBI intervened in the market through state-run banks in both the spot and the forward markets to prevent further gains in the rupee, he added.
The greenback traded modestly higher against major trading couterparts as well as anticipation that President Donald Trump will unveil his tax plan on Wednesday aimed at spurring growth in the US economy.
The domestic currency resumed a tad higher at 64.42 from Monday's close value of 64.44 at the Interbank Foreign Exchange market.
Maintaining its strong momentum, the home unit touched a high of 64.21 in mid-afternoon deals before ending at 64.26, revealing a solid gain of 18 paise, or 0.28 per cent.
Yesterday, the rupee has appreciated 17 paise.
The RBI, meanwhile, fixed the reference rate for the dollar at 64.2776 and for the euro at 69.8569.
Meanwhile, the dollar index, which tracks the U.S.
currency against a basket of six major rivals, was down 0.05 pct at 98.86.
In cross-currency trade, the local unit recovered against the pound sterling to finish at 82.40 from 82.61 per pound and also bounced back against the euro to settle at 69.90 compared to 69.95 earlier. (PTI)