Re gains 30 paise Vs dollar; ends 5-day falling streak

Forex dealers said signs of persistent foreign capital inflows also helped the rupee to bounce back. A sharp recovery in euro against the dollar in the global market also buoyed the local currency, they added.

The local currency hovered in a range of 54.51-54.93 at the Interbank Foreign Exchange (Forex) market, before settling at 54.55 against the dollar, a gain of 30 paise, or 0.55 per cent, from its previous close, they added.

Foreign institutional investors (FIIs) bought shares around USD 169.24 million (Rs 922.37 crore) yesterday, as per provisional data from the stock exchanges.

In signs of capital inflow into equity markets, the BSE benchmark Sensex rose for the second day today by ending 111 points higher at 19,476.

 

"Sharp recovery in the euro and the falling dollar index helped the rupee to reach the levels of 54.50 during the day. Positive stock markets also lifted the sentiments up.

Further, the passing of the crucial Banking Bill which will infuse more capital in the banking sector, boosted the rupee sentiment," said Abhishek Goenka, (Founder & CEO, India Forex Advisors).

In London, the euro hit a 16-month high against the yen and 7-1/2 month peak against the dollar today, helped by better-than-expected German business confidence data.

The yen also weakened broadly on expectations the Bank of Japan will unveil more monetary stimulus when its two-day policy meeting ends on Thursday. (MORE)