MUMBAI: The rupee continued its onward march against the US dollar for the third day in row by gaining 10 paise to close at 46.37/38, despite a lower opening in tandem with the stock markets.
The local currency recovered from its initial losses against the American greenback on fresh selling by banks in view of the rising demand from importers amid recovery in the domestic equity markets. The lower opening was also due to the month-end demand for the US currency from importers, mainly oil refiners, coupled with bearish stock market, which opened in the red following weak Asian cues. The stock market also trimmed its deeper fall towards the closing trade.
Following bourses, the local unit ended at 46.37/38 a dollar against yesterday's close, showing a net gain of 10 paise due to selling of dollars by corporates on the back of recovery in the local stocks. The rupee moved in a range of 46.36 and 46.64 during the day.
In a choppy trade, the Bombay Stock Exchange benchmark Sensex recovered from its initial sharp losses but still ended down by 49.10 points at 17,131.08 points, due to profit- booking at higher levels triggered by sharp fall in Chinese indices and the rest of Asia and a negative opening in Europe.
The dollar was stable in early trade in Asia after losing ground in New York, while Asian shares slipped as investors shrugged off the massive rally on the Wall Street and Europe yesterday driven by better-than-expected US home sales data.
POSTED BY:
PALLAVI SINGH
PGDM III SEM
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