The rupee value on Tuesday made a sharp recovery after Monday's huge pitch in prices. It has increased by 14 paise, that is close to 64.74 against the US currency on fresh sessions of dollar selling exporters and banks.
“Despite high volatility in domestic equities, vigorous inflow of capitals massively aided the recovery despite high volatility in domestic equities,” a forex dealer said.
From July 1, 2017, after the Goods and Services Tax came into force in a historic midnight session in the Central Hall of Parliament, domestic equity markets opened widely to global markets.
Amid easing dollar pressure at the Interbank Foreign Exchange (Forex) Market, the local currency inflated at 64.80 against Monday's value close of 64.88.
Before the day ended, it showed a rise of 14% or 0.22 percentage from 64.69 to 64.74 and hit an intra-day high by late afternoon. Against all other currencies overseas, it received backing from a weak dollar.
The rupee value on the previous day had a sharp fall of 30 paise against the US dollar, which implies over one-month low of 64.88.
Meanwhile, the RBI defined the reference rate for Euro at 73.5995 and for dollar at 64.8168. Amidst all predictions of Fed rate hikes in near term, the dollar traded overseas effectively against all its rivals. Against six major rivals, the dollar index kept US currency up at 96.00 i.e, the US dollar kept its uptrend against all major currencies of the world, altering Fed policy expectations and proposed possibility of a hike at the meetings of FOMC in September and December.
In cross-currency trades, the rupee retrieved losses against pound sterling from 84.03 per pound to 83.70, and also recoiled against the euro to finish from 73.77 to 73.42 from yesterday.
From 57.40 per 100 Japanese yen, it strived to settle down to 57.21. The six-month benchmark mark premium accountable in December flashed down from 146-148 paise to 143.50-145.50 paise and succeeding the June 2018 contract, it also depreciated from 293-295 paise to 289-291 paise.
Premium for dollar fell weak due to proficient receivings from exporters in the global upfront today.