Rupee ends 3 paise higher at 63.52 against US dollar

Mumbai: Extending gains for the fourth straight day, the rupee moved up by three paise to close at 63.52 against the American currency on persistent selling of dollars by banks and exporters on hopes of resumption of foreign capital inflows.

Sustained rise in equity markets in view of progress in monsoon mainly boosted the rupee value against the dollar, forex dealers said. The rupee resumed slightly higher at 63.52 as against the last weekend's level of 63.55 at the Interbank Foreign Exchange (Forex) market.

It moved in a range of 63.57 and 63.46 during the day, before ending at the same opening level of 63.52, showing a gain of three paise, or 0.05 per cent, from its last weekend's level.

It has gained 74 paise, or 1.16 per cent, in last four trading days. In the Asian market on Monday, the euro continued to gain against the dollar and the yen though many investors chose to stay on the sidelines with no fresh trading cues ahead of last-ditch Greek bailout talks in Brussels later in the day.

Veracity Group CEO Pramit Brahmbhatt said, "Today, not much movement was seen in the USD/INR pair, it opened at 63.52 and as the day progressed, it made a high of 63.57 and low of 63.46, taking cues from strong local equities which closed on a positive note."

The trading range for the spot USD/INR pair is expected to be within 63.20 and 63.80. Meanwhile, the benchmark BSE Sensex rose by 414.04 points, or 1.52 per cent, to close at 27,730.21.

In the forward market, the premium for dollar declined on receivings from exporters. The benchmark six-month premium payable in November eased to 199-201 paise from 200-202 paise on last Friday while maturing in May, 2016 also closed lower at 426.5-428.5 paise from 428/430 paise.

The RBI fixed the reference rate for the dollar at 63.5098 and for the euro at 72.3186. The rupee moved up against the pound sterling to 100.43 from 100.85 previously and also looked up against the euro to 72.00 from 72.09 previously.

The domestic unit rose against the Japanese unit to 51.51 per 100 yen from 51.81 previously.