Rupee jumps 58 paise vs dollar, snaps 5-session falling string

The rupee today gained a hefty 58 paise against the US currency to end its five-session falling string on fresh dollar selling by exporters and banks.

Suspected intervention by the central bank and also hopes of more capital inflows into equity markets helped the rupee to bounce back, a dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit settled at 50.69/70, a gain of 58 paise, or 1.13%, over the last close. In last five sessions, it had fallen by 1.09 paise or 2.17%.

The domestic currency had opened higher at 51.15/16 a dollar against last close of 51.27/28 on weakness in dollar in early stages after the US Federal Reserve Chairman kept the door open for more monetary easing.

However, the dollar recovered in late afternoon deals and its index was quoting higher over 0.1% against a basket of currencies in Europe today ahead of US housing as well as consumer data.

The rupee later shot up to 50.62 before ending at 50.69/70.

"The overnight losses in dollar index helped rupee for a stronger opening which continued in the day's session on RBI intervention and intra-day positive equity markets," Alpari Financial Services (India) CEO Pramit Brahmbhatt said.

"The Equity markets remained volatile amidst strengths in INR and the reports over Governments stance concerning recently proposed General Anti-Avoidance Rule (GAAR) which will come into effect from 1 April 2012," he added.

The RBI intervening the money market, however, could not be independently ascertained.