Rupee recovers by 13 paise vs dollar after initial losses

Rupee plunges to 61.65 against dollar in early trade

The Rupee recovered by 13 paise to 61.46 against the US dollar after initial losses following the selling of dollars by banks and exporters amid strong recovery in the equity market.

Persistent foreign capital inflows also boosted the rupee value against the dollar, a forex dealer said.

The Rupee resumed higher at 61.57 per dollar as against the last closing level of 61.59, but dropped immediately to 61.70 on dollar demand from banks and importers.

However, it recovered afterwards to 61.45 before quoting at 61.46 per dollar at 1040hrs.

Meanwhile, in New York market, the US dollar was flat to slightly higher versus most major rivals other than the yen on Wednesday as worries about China’s banks spurred a round of haven-related buying, strategists said.

The Indian benchmark sensex crossed 21K mark after 35 months and was quoting at 20,964.80 at 1050hrs, showing a sharp gain of 196.92 or 0.95 pct from its last close.

(With inputs from agencies)


Niticentral Staff

News Analysis Desk of Team Niti Central.