Rupee logs best single-day gain this yr, up 50 paise

Snapping its three-day losing run, the rupee on Thursday jumped 50 paise to log its biggest single-day gain this year and ended at 67.57 on fresh selling of dollars by banks and exporters, helped by a recovery in stocks.

Weakness of dollar in the foreign market also boosted the value of rupee against the dollar, a foreign-exchange dealer said.

The rupee resumed higher at 67.85 a dollar as against Wednesday's closing level of 68.07 at the Interbank Foreign Exchange market and firmed up further to close at 67.57, showing a gain of 50 paise.

The rupee had dropped by 29 paise or 0.43 per cent in the previous three days.

The domestic currency hovered in a range of 67.55 to 67.88 per dollar during the day.

In the global market, the dollar logged its largest one-day drop versus the euro since early December, after a disappointing reading on US service-sector activity was seen as the US central bank putting interest-rate increase on hold.

Pramit Brahmbhatt of Veracity Financial Services said, "Taking cues from the global stock market, the rupee opened on a positive note below 68 levels and since opening we saw the rupee strengthening as the day progressed.

"Our benchmark index Nifty closed with a considerable gain of 42 points and following to the same, rupee strengthened thus by the weakening dollar. Thus, the rupee closed with a gain of 52 paise at 67.55 levels."

Trading range for spot dollar/rupee pair is expected to be within 67.2-to-67.8 range.

The BSE benchmark Sensex ended higher by 115 points or 0.5 per cent.

Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth Rs 357 crore on Wednesday, going by provisional data released by stock exchanges.

Meanwhile, US crude oil stayed below $30 per barrel in Asia on Thursday as oil price losses deepened on expectations that US petroleum stockpiles would rise further and worsen the already over-saturated global market.

The dollar index was lower by 0.65 per cent against a basket of six currencies in late afternoon trade.

In forward market, premium for dollar eased further on persistent receivings from exporters. The benchmark six-month premium payable in July moved down to 203-205 paise from 205.75-207.75 paise on Wednesday and far-forward January 2017 contract declined to 412-414 paise from 415-417 paise.

The RBI fixed the reference rate for the dollar at 67.8093 and the euro at 75.1327.

In cross-currency trades, the rupee dropped further against the pound sterling to end at 98.78 as against 98.62 yesterday and the euro also moved down to 75.54 from 74.39.

The domestic unit declined further against the yen to 57.47 from 57.00 per 100 yen.