Rupee steadies, pulls back below 66 against dollar
31 Aug 2013
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The rupee continued to rule below the 66-mark against the dollar on friday, extending yesterday's recovery, gaining from dollar sales by banks and exporters on expectations of a rise in rupee value.
The rupee resumed above 67 per dollar against the previous closing level of 66.55 per dollar on the interbank foreign exchange market but firmed up further to below 66 as the session progressed.
On Thursday, the Indian unit had gained 225 paise or 3.27 per cent against the US currency, closing at 66.55 per dollar after hitting an intra-day high of 66.51 in the previous session.
The rupee, which suffered the most this month, losing around 10 per cent against the dollar so far, gained the most in at least 15 years yesterday, after the Reserve Bank of India eased pressure in the currency market by opening a separate dollar window for state-run oil refiners.
The rupee, which has been under pressure from a daily demand for foreign currency worth $400 million to $500 million, got some breathing space after RBI lifted the forex market's burden.
State-run oil refining and marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, require about $8.5 billion every month to import an average 7.5 million tonnes of oil.
With the daily demand for dollar easing and stock markets recovering after FIIs slowed stock sales, banks and exporters preferred to reduce their dollar position.
A 230-point rise in the Bombay Stock Exchange sensitive index to 18,631 also helped the rupee's recovery.
The dollar index was nearly flat at 81.933, after rising as high as 82.067 on Thursday, its highest level since 5 August.
The rupee resumed above 67 per dollar against the previous closing level of 66.55 per dollar on the interbank foreign exchange market but firmed up further to below 66 as the session progressed.
On Thursday, the Indian unit had gained 225 paise or 3.27 per cent against the US currency, closing at 66.55 per dollar after hitting an intra-day high of 66.51 in the previous session.
The rupee, which suffered the most this month, losing around 10 per cent against the dollar so far, gained the most in at least 15 years yesterday, after the Reserve Bank of India eased pressure in the currency market by opening a separate dollar window for state-run oil refiners.
The rupee, which has been under pressure from a daily demand for foreign currency worth $400 million to $500 million, got some breathing space after RBI lifted the forex market's burden.
State-run oil refining and marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, require about $8.5 billion every month to import an average 7.5 million tonnes of oil.
With the daily demand for dollar easing and stock markets recovering after FIIs slowed stock sales, banks and exporters preferred to reduce their dollar position.
A 230-point rise in the Bombay Stock Exchange sensitive index to 18,631 also helped the rupee's recovery.
The dollar index was nearly flat at 81.933, after rising as high as 82.067 on Thursday, its highest level since 5 August.
