Rupee logs best gain in 3 weeks, up 40 paise

The currency rebounded on fresh dollar selling by exporters and some banks

Bucking the weak trend in stocks, the rupee on Wednesday bounced back by 40 paise, its sharpest single-day gain in three weeks, to end at 63.17 against the greenback on fresh dollar selling by exporters and some banks.

Besides, talk of foreigners buying domestic debt also helped the local currency snap a two-session downward trend.

The rupee commenced better at 63.51 a dollar from the earlier close of 63.57. However, it fell back to the day’s low of 63.56 on some weakness in local equities amid strong dollar.

The rupee later rebounded sharply to a high of 63.15 on fresh dollar selling by exporters and some banks before settling at 63.17, a rise of 40 paise or 0.63 per cent. This is its strongest gain since December 18, when it had appreciated by 50 paise.
 
In the previous two sessions, the rupee had dropped 28 paise or 0.44 per cent.

The overnight call money rates ended higher at eight per cent from Tuesday’s closing level of 7.50 per cent. It opened higher at 8.15 and moved in a range of 8.30 per cent and 7.50 per cent.