Rupee rises to over 1-month high, up 19 paise

The currency appreciated taking cues from strong local equities, says Veracity Group CEO

The Indian rupee today appreciated for the second straight session and rose 19 paise to log its over one-month closing high of 61.87 against the Greenback following sustained dollar selling by exporters and capital inflows in local shares.

However, a strong dollar overseas after Switzerland's unexpected move to lift its currency restriction, capped the rupee's gains. The dollar index was up 0.41% against its major global rivals while the euro hit over a decade low.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 62.08 a dollar from previous close of 62.06. It then declined further to a low of 62.20 on some hesitancy in local equities in early trade.

However, rupee bounced back on a late rally in domestic stocks to a high of 61.79 before settling at 61.87, showing a rise of 19 paise or 0.31%. Yesterday, it had risen by 12 paise or 0.19%.

This its strongest close since 61.83 on December 8, 2014.

The stock benchmark S&P BSE Sensex today improved further by 46.34 points, or 0.17%. FPIs bought shares worth USD 274.03 million yesterday, as per Sebi data.

Pramit Brahmbhatt, Veracity Group, CEO said," Rupee appreciated taking cues from strong local equities. Also, the FIIs buying in debt market helped rupee to trade strong against the mighty dollar index which is heading towards to post its fifth weekly gain in a row."

The trading range for the spot USD/INR pair is expected to be within 61.40 to 62.40, he added.