Forex update: Rupee recovers from over 9-month low, ends at 62.02 against US ... - Business Today

The rupee on Monday recovered from initial losses and edged marginally higher at 62.02 against the Greenback, snapping a two-day losing trend, on late dollar selling by exporters and some banks.

After opening weak, the rupee hit a fresh nine-month low of 62.25 against US currency as traders reacted to government easing curbs on gold imports and economic growth for second quarter coming at a tepid 5.3 per cent. However, the local unit erased the losses and closed marginally higher by one paisa.

At the Interbank Foreign Exchange (Forex) market, the rupee commenced sharply lower at an intra-day low of 62.25 a dollar from Friday's close of 62.03.

The mood was a bit cautious ahead of Reserve Bank of India's (RBI) monetary policy review.

"Over this week, we expect the pair to trade within a range of 61.60/80 and 62.30/40 levels on spot. RBI monetary policy and US November jobs report will be key data points," said Anindya Banerjee, Currency Analyst, Kotak Securities.

Later, the rupee rebounded on dollar selling by some banks and exporters and ended at an intra-day high of 62.02 against the American unit, up 0.02 per cent.

In the previous two sessions, the rupee had lost 19 paise.

The domestic currency had little help from the domestic stock market on Monday as the benchmark Bombay Stock Exchange (BSE) index Sensex closed 134.37 points (or 0.47 per cent) lower.

There was support for the rupee from data released by the Securities and Exchange Board of India (Sebi) that showed FPIs/FIIs infused US $396.24 million in the domestic market on Friday.

The dollar index, a gauge of six major global rivals, was down by 0.15 per cent. Oil prices fell to a five-year low and even gold rates fell as global investors were risk-averse.

Pramit Brahmbhatt, CEO, Veracity Group said, the trading range for the spot rupee is expected to be within 61.60 to 62.40.

In the forward market, premia closed steady to weak on stray receipts from exporters.

The benchmark six-month premium payable in May ended at its last Friday's closing level of 224-226 paise while forward contracts maturing in November, 2015, softened to 433.5-435.5 paise from 435-437 paise.

The RBI fixed the reference rate for dollar at 62.1377 and for the Euro at 77.3677.

The rupee fell back against the pound to 97.48 from Friday's close of 97.34 while it moved down further to 77.31 per euro from 77.29.

The domestic unit, however, improved further to 52.36 per 100 Japanese yen from 52.48 last Friday.