Rupee bounces back by 11 paise, ends at 62.20

The currency continued to trade range bound and appreciated by 11 paise as local equities traded strong, says Veracity Group CEO

The rupee recouped by 11 paise to close at 62.20 against the US currency on fresh selling of the dollar by banks and exporters on hopes of more foreign capital inflows into equity market.

The rupee resumed higher at 62.25 per dollar as against the last close of 62.31 per dollar at the Interbank Foreign Exchange Market. It firmed up further to close at 62.20 per dollar, showing a rise of 11 paise or 0.18%.

The domestic currency hovered in a range of 62.20 per dollar and 62.34 per dollar during the day. The rupee had lost 9 paise against the dollar yesterday.

"Rupee continued to trade range bound and appreciated by 11 paise today, as local equities traded strong," Veracity Group CEO Pramit Brahmbhatt said.

FIIs continued to pour money into the debt market and some banks were also seen selling dollars aggressively in the market which helped rupee strong against the dollar, he added.

As per provisional stock exchange data, FIIs bought shares worth over Rs 600 crore yesterday.

Meanwhile, the benchmark Sensex moved up by 29.55 points or 0.10% to finish at 29,004.66.

The dollar index was up by 0.25% against a basket of its major global rivals.

The forward premia eased on mild receipts by exporters.

The benchmark six-month premium payable in July moved down to 202-204 paise from yesterday's level of 203-205 paise and forward contracts maturing in January 2016 also fell to 416-418 paise from 418-420 paise.

The Reserve Bank of India fixed the reference rate for dollar at 62.2758 and for Euro at 70.6021.

The rupee declined further against the pound to 96.01 per pound from 95.65 previously and also fell against the euro to 70.45 from 70.43 paise yesterday.

However, it firmed up further to 52.04 per 100 yen compared to 52.34 previously.