Rupee ends at 62.25; logs longest run of gains since 2011

The rupee on Tuesday inched up three paise against the dollar, to end at 62.25, extending its winning streak to a seventh straight session — the longest string of gains since June 2011.

The rupee opened higher at 62.20 a dollar against its previous closing level of 62.28 at the interbank foreign exchange market. It then firmed up further to 62.14 on initial selling of dollars by banks and exporters, in view of sustained capital inflows.

Expectations that the US Federal Reserve will not tighten its monetary policy until the second half of the year has helped emerging market currencies like rupee to gain.

However, the rupee trimmed its initial gains on some dollar demand from banks and importers and ended at 62.25, a marginal gain of three paise.

The rupee has now gained 71 paise or 1.13% against the US dollar in seven straight trading sessions.

In the Asian market today , the euro fell against the dollar and the yen, with some traders adjusting positions after the currency staged a rally overnight.

The dollar index, a gauge of six major global rivals, was down by 0.19% today.

In New York Market yesterday, the dollar traded lower against its rivals yesterday after recording its largest weekly percentage decline against the euro since October 2011.

Oil prices declined in the Asian trade today after activity in China's factory sector fell to an 11-month low, stoking worries over the strength of the world's No.2 economy.

Meanwhile, the Indian stock benchmark Sensex ended lower by 30.30 points, or 0.11%, to 28,161.72.