T
he rupee breached the 60-level to 59.91
against the dollar for the first time in eight months against the
dollar, buoyed by strong equities and consistent fund inflows. At the
Interbank Foreign Exchange (Forex) market, the rupee surged 63 paise to
59.68 during the day but surrendered some gains. Forex dealers said
that Reserve Bank was present in the market at various levels, at 60,
59.95 and 59.85, which capped the rupee’s gain. The domestic currency
finally settled the day at 59.91, a surge of 40 paise or 0.66 per cent
from its previous close. Previously, the rupee had logged its intra-day
high of 59.52 on July 30, 2013 rpt 2013 and registered its closing
high of 59.41 on July 29, 2013 rpt 2013. Forex dealers, however, said
the rupee may weaken if the poll outcome is not as per market
expectations. "Higher inflows from foreign investors has been
supporting the rupee," said Ramesh Singh, Treasurer at Central Bank of
India, adding that once the current euphoria on hopes of a new
government gets over and markets get stabilized, we may see some fall in
the rupee. Sustained dollar selling by exporters too aided the rupee
sentiment, a dealer said. Pramit Brahmbhatt, CEO, Alpari Financial
Services (India) said: "Today rupee traded strong throughout the day
against the dollar and made eight month high of 59.68, taking cues from
the local equities which traded at all time high." The BSE benchmark
Sensex scaled a new high for the fifth straight day today but ended a
little lower at 22,339.97, which is its fresh closing record. It set
all-time record of 22,363.97 points intra-day. FIIs injected USD 375.44
million yesterday as per Sebi data. The dollar index was up by a mere
0.05 per cent against its major global rivals in overseas market.
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