At the Interbank Foreign Exchange (Forex) market, the rupee commenced strong at 54.37 a dollar from last close of 54.49. Tracking the strong uptick in stock markets and early dollar sales by exporters, the rupee improved further to log nearly a two-week high of 54.34.
However, dollar demand from importers, mainly oil refiners, and some banks as also rise in dollar overseas later weighed on the rupee. It fell to a low of 54.69 before settling at 54.61, clocking a net fall of 12 paise or 0.22 per cent. Yesterday, it was up by 27 paise or 0.49 per cent.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,"The rupee traded on a volatile note initially rising on sharp gains in domestic equity markets but later turned weak due to demand from oil importers...The widening trade deficits and the dollar demand at lower levels is limiting gains in rupee."
The Indian stopck market benchmark Sensex today closed further up by 80.41 points or 0.40 per cent. As per provisional BSE data, FII pumped funds worth Rs 1,077 crore in stocks today.
The dollar index, consisting of six major global currencies, was up by 0.10 per cent while New York crude oil was quoting above USD 94 a barrel in Europe today. (MORE)