Rupee up 19p, logs longest winning streak since 2012

The rupee on Monday strengthened by 19 paise against the  dollar in its sixth straight day of rise — its longest winning run since 2012 — to end at 62.28, on sustained selling of the dollar by banks and exporters amid foreign capital inflows.

The rupee resumed slightly higher at 62.40 a dollar against the previous weekend’s level of 62.47 at the interbank foreign exchange market.

It then firmed up further to 62.24 before ending at 62.28, showing a gain of 19 paise or 0.30 per cent. It has gained 70 paise, or 1.11 per cent, in six successive trading sessions. This is its longest winning streak since 2012.

Banks and exporters preferred to reduce their dollar position in view of good foreign capital inflows into equity market, said forex brokers, adding that the dollar’s weakness has also helped the rupee sentiment.

To deepen markets and help raise funds for business and infrastructure projects, capital markets regulator Sebi has announced a slew of measures including for listing of municipal bonds and for setting up of a global financial hub within India on the lines of Singapore and Dubai.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 354.59 crore last Friday, as per provisional data.

In the Asian market, the dollar was down slightly in a rangebound Asia trade today amid lack of fresh cues.

The dollar index, a gauge of six major global rivals, was down by 0.14 per cent today.

"The Dollar continues to weaken on Monday. The Euro remains flat to positive against the Dollar as markets await European Central Bank President Mario Draghi's address in which he likely to comment on Greece's debt crisis and the progress of the ECB's ongoing bond-purchase programme," said Suresh Nair, Director, Admisi Forex India Pvt Ltd.

In the New York Market, the dollar finished the week about 1.5 per cent lower against the Euro on last Friday, snapping three weeks of gains.